Amazon founder Jeff Bezos to take executive chair role in Q3, Jassy named CEO

News Broadband Global 3 FEB 2021
Amazon founder Jeff Bezos to take executive chair role in Q3, Jassy named CEO

Amazon founder Jeff Bezos is stepping back as CEO to become executive chair of the company from the third quarter. Andy Jassy, a long-time Amazon veteran and current CEO of Amazon Web Services, will become the new CEO at that time. 

In the new role of executive chairman, Bezos said he will focus on "new products and early initiatives", as well as his other ventures, such as the Day 1 Fund, the Bezos Earth Fund, Blue Origin and The Washington Post. In an email to employees on the transition, he highlighted the company's record of invention, saying "Right now I see Amazon at its most inventive ever, making it an optimal time for this transition."

The announcement came alongside fourth-quarter results showing net profit more than doubled, to USD 7.2 billion from USD 3.3 billion a year earlier. Sales increased 44 percent to USD 125.6 billion, and operating profit rose to USD 6.9 billion from USD 3.9 billion in Q4 2019, with both figures beating the company's guidance. 

Over the full year 2020, Amazon increased sales 38 percent to USD 386.1 billion, and net profit rose to USD 21.3 billion from USD 11.6 billion. 

For the first quarter, Amazon forecast sales of USD 100-106 billion, up 33-40 percent from a year earlier. Operating profit is estimated at USD 3.0-6.5 billion, compared with USD 4.0 billion in first quarter 2020. This guidance assumes around USD 2.0 billion of costs related to Covid-19.

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