Amazon Chief Executive Officer Jeff Bezos will step down from that role, according to an email announcement Bezos sent out on Tuesday.
Bezos, whose fortune goes far beyond Amazon, will be replaced by Andy Jassy, CEO of Amazon Web Services. However, this does not mean Bezos is stepping away from the company he and his ex-wife Mackenzie founded in 1993. He plans on taking the role of Executive Chair and focusing his attention on new initiatives.
Amazon is now worth $1.7 trillion. It originally was solely focused on being an online bookstore. Over the years, Amazon has expanded into selling products for homes, offices, bedrooms, and other physical furniture pieces.
Jeff Bezos Turning Attention To New Products For Amazon
In part, Bezos’ email to Amazon employees says, “I’m excited to announce that this Q3 I’ll transition to Executive Chair of the Amazon Board and Andy Jassy will become CEO. In the Exec Chair role, I intend to focus my energies and attention on new products and early initiatives. Andy is well known inside the company and has been at Amazon almost as long as I have. He will be an outstanding leader, and he has my full confidence.
“This journey began some 27 years ago,” Bezos also writes. “Amazon was only an idea, and it had no name. The question I was asked most frequently at that time was, ‘What’s the internet?’ Blessedly, I haven’t had to explain that in a long while.
“Today, we employ 1.3 million talented, dedicated people, serve hundreds of millions of customers and businesses, and are widely recognized as one of the most successful companies in the world,” he writes.
Bezos Offers No Explanation On Timing Of Announcement
But why would Bezos, the world’s richest man, decide on a Tuesday in February to drop this bomb? He did not offer any explanation about stepping down from his role at Amazon.
Bezos did encourage his staff in his email to “keep inventing” and remain convinced of an idea even if it “looks crazy.”
Now the next question might be how did the stock market respond to the news. What did Amazon’s stock do on Tuesday?
Overall, not much up or down, with just a $37.12 increase. That being said, it did trend downward toward close.
The news of Bezos leaving his CEO role might have a ripple effect on Wednesday’s market action.
It also should be noted that Bezos owns The Washington Post and all of its media components.
Like other large online platforms, Bezos has, at times, had to go before Congress and talk about issues affecting online business.
Amazon, though, continues to grow and has even shown its ability to stay strong in the midst of the COVID-19 pandemic. The company has hired drivers and warehouse employees to help fulfill customers’ needs.
Bezos started Amazon in a one-room office with himself, a desktop computer, and a telephone. Now he’s one of the most influential and powerful men in the world. Certainly, it’s been quite a ride for Jeff Bezos. But he’s giving up the CEO role and letting someone else take over at the helm.
H/T: Daily Mail