Jeff Bezos steps down as CEO of Amazon

Can this be really it? The future of Amazon to change as Jeff Bezos, the CEO of the company to step down.

On Tuesday, February 3rd, leaving the leadership as Jeff said that he will step down as CEO of Amazon, which was founded 27 years ago.

Andy Jassy, the chief executive of Amazon Web Services, will take the new role of the CEO of Amazon. Whereas Jeff will be transitioning to the executive chair of the company somewhere around the third quarter of 2021.

In a memo to employees, Bezos said the step down in role will give him ‘the time and energy that he needs to focus on the Day 1 Fund, the Bezos Earth Fund, The Washington Post and his other passions’.

Alarm bells set off in Wall Street and through the entire business community with this announcement, although the change does not foretell any immense change to Amazon’s business. Amazon reported 2020 a year of record growth, with a 38% of net sales increase from 2019, netting the company income to $21 billion, nearly more or less double from the previous year. Investors did not seem to be puzzled by the news. Amazon’s share price was up about 15% following the announcement.

Making Amazon one of the most valuable companies in the world, as Bezos steps down from Amazon at the time when the market value floating around $1.7 trillion.

It remains to be viewed how active Bezos will be in Amazon’s Business with his new role. However, few other major Tech Executives have also stepped down as CEO and remained comfortably involved in their companies’ business, including Bill Gate at Microsoft and Larry Ellison at Oracle, leaving Bezos one of Amazon’s biggest shareholder.

On the other hand, Brian Olsavsky, Chief Financial Officer of Amazon told the investors that “I will reiterate (Jeff Bezos) is not leaving”. He is going to be Executive Chairman, super important role, super active in the Amazon success story.

Jassy, who is one of the longtime Amazon employees, joined in 1997 and built the company’s cloud service business, that started off with a small addition to its e-commerce operations but has grown tremendously in recent years, says more or less about 60 percent, making it leaders of the cloud computing industry.

Bezos is one of the richest persons in the world, having recently been edged out of the top spot by Tesla CEO Elon Musk. Jeff Bezos explained in the memo to employees, “What was the internet? The question he was asked the most. He said, “blessedly, I haven’t had to explain that in a long while”.

Furthermore, dedicating his time to space exploration company Blue Origin and to The Washington Post, which he owns. Bezos said he plans to heart on his philanthropic efforts including the Day 1 Fund, and the Bezos Earth Fund, which aims to help homeless families and starting pre-school with low-income communities.

“It’s not just money, it’s not financial capital,” Baron said. “It’s intellectual capital. He’s someone who understands consumer business and consumer behavior. That is really important to us.”

Bezos has faced few accusations that he has been slow to share his fortune. His former wife, MacKenzie Scott, the philanthropist and author who divorced Bezos in 2019, has given away more than $6 billion in the previous year. As a part of a divorce, Scott received a 4 percent stake in Amazon.

Bezos big move has brought up many reactions from his fellow tech chiefs.