Connect with us

Hi, what are you looking for?

Investing

Jeff Bezos to stand down as Amazon chief executive

Jeff Bezos

Jeff Bezos is preparing to stand aside as chief executive of Amazon after it beat Wall Street’s high expectations last night with record quarterly sales and profits.

Having overseen its rapid transformation from online bookseller to the world’s largest digital retail business, Bezos, 57, will become executive chairman this year. He said that now was the “optimal time” for such a transition. Andy Jassy, who leads Amazon’s cloud computing division, will succeed him as chief executive.

The ecommerce group reported a 44 per cent increase in revenue to $125.6 billion — its first quarter above $100 billion — as coronavirus restrictions prompted many millions of consumers to shop online. Profit more than doubled to $7.2 billion in the last three months of 2020.

Amazon, which has more than 40,000 staff in the UK, is the world’s largest ecommerce business, with groceries, internet advertising and video and music streaming among its sprawling empire of interests. Through its web services division, it is also the largest cloud computing company.

Bezos, the world’s richest person, set up Amazon in 1994. He will take up his new role in the third quarter in a move he insisted last night “isn’t about retiring” but was creating time for other projects. Shares in Amazon rose by 1.6 per cent to $3,433.51 in after-hours trading, valuing it at $1.7 trillion.

Describing Jassy, 53, as an “outstanding leader”, Bezos told staff that he intended to focus on new products and initiatives in his new position. Amazon “is what it is because of invention”, he said. “If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive.

“When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”

The company’s stock rose by more than 100 per cent last year as the pandemic drove demand for its services by prompting people to work, study, shop and play at home.

Bezos announced his decision as many areas of Amazon’s businesses, including third-party service sales, such as warehousing, beat market expectations. Its web services division, led by Jassy, fell marginally shy of forecasts, however, with revenue of $12.7 billion. Wall Street analysts had expected $12.8 billion from the unit, which typically generates more than half Amazon’s operating income.

Jassy, who joined the company in 1997, has led its cloud computing business since its inception in the early 2000s. He attended Harvard Business School and is a minority investor in the Seattle Kraken, an ice hockey team.

He has publicly echoed the ethos espoused by Bezos, telling the Silicon Angle website last autumn: “Any time we’re not statistically indistinguishable from perfect, we’re going to be unhappy.”

Yesterday Amazon revealed designs for its second headquarters in Arlington, Virginia, with a double helix at the site’s centre.

The US Federal Trade Commission announced yesterday that Amazon would pay $61.7 million to settle charges that it had failed to pay some drivers the full proportion of tips from customers over two and a half years. The company said that it was “pleased to put this matter behind us”.

Read more:
Jeff Bezos to stand down as Amazon chief executive

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Preliminary results of Philippine Statistics Authority’s latest Labor Force Survey showed there were around 3.764 million unemployed Filipinos in June, inching up from 3.730...

Economy

THE PHILIPPINE economy’s recovery will depend on how quickly business confidence is restored, which will in turn boost private sector investments, Moody’s Investors Service...

Economy

INVESTMENT PLEDGES approved by the Philippine Economic Zone Authority (PEZA) climbed by 8.5% in the first half after coming off a low base last...

Economy

CHINA LIANHE Credit Rating Co. maintained its “AAA” credit rating for the Philippines with a “stable” outlook, as it expects economic recovery to begin...

Economy

AYALA Land, Inc. (ALI) on Tuesday said it generated P3.3 billion in the second quarter, over 16 times the P426-million income it logged year...

Economy

SOLAIRE Resort & Casino operator Bloomberry Resorts Corp. finished the quarter with a “respectable” performance after trimming its consolidated net loss to P1.2 billion,...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!