Jeff Bezos steps down as CEO of Amazon
By Clare Duffy, CNN Business
(CNN) – Amazon founder Jeff Bezos will step down as chief executive later this year and step up as executive chairman, the company said on Tuesday. He will be replaced by Andy Jassy.
Bezos has been the CEO of Amazon since its founding in 1995. He has overseen its growth from an online bookseller to a $ 1.7 trillion global retail and logistics giant, which has also made de Bezos one of the richest people in the world. Jassy has worked for Amazon since 1997 and is currently the CEO of the company’s cloud business, Amazon Web Services, which is its main driver of profit.
Bezos said in a letter to employees on Tuesday that he was excited about the transition.
“Being the CEO of Amazon is a deep responsibility, and it consumes,” Bezos wrote. “When you have a responsibility like this, it’s hard to call attention to anything else. As Executive Chairman, I will remain engaged in important Amazon initiatives, but I will also have the time and the time. energy I need to focus on Day 1, the Bezos Earth Fund, Blue Origin, The Washington Post and my other passions. I’ve never had more energy, and it’s not about taking my retirement I am very passionate about the impact these organizations can have.
The news came as part of Amazon’s fourth quarter earnings report. The company easily beat Wall Street analysts’ forecasts for sales and earnings, ending a record year as the pandemic boosted both its retail and cloud business.
The company’s shares were essentially flat outside of trading hours on Tuesday after the news broke. Amazon stock has risen nearly 69% in the past year.
Amazon reported quarterly net sales of $ 125.6 billion, up 44% from the same period a year earlier and well ahead of the $ 119.7 billion forecast by Wall Street analysts .
Net income for the quarter reached $ 7.2 billion, nearly double the $ 3.7 billion forecast by Wall Street and more than double the $ 3.3 billion in revenue the company earned in the past. quarter of last year. Diluted earnings per share was $ 14.09.
Quarterly results include sales from Prime Day, which was held on October 13 and 14 after being postponed over the summer due to the pandemic.
As for the full year, Amazon said its net sales rose 38% to $ 386.1 billion, more than $ 6 billion more than analysts had expected. Net income for 2020 reached $ 21.3 billion, or $ 41.83 per diluted share, an increase of nearly 84% from the previous year.
This is a developing story and will be updated with more details as they appear.