Amazon.com Inc founder Jeff Bezos will step down as CEO and become executive chairman, naming the head of its lucrative cloud computing division as successor in a sign of the company’s transformation from web retailer to internet conglomerate.
This summer, Bezos, 57, will hand the keys of the world’s largest online retailer to Andy Jassy, head of its cloud division Amazon Web Services known as AWS. The announcement on Tuesday settles a long-running question about who would replace the world’s second-richest person at the company’s helm.
Bezos is ending his role as CEO on a high note: the business he began as an internet bookseller 27 years ago is now one of the world’s most valuable companies and posted three consecutive record profits after losses in decades prior. On Tuesday, Amazon reported quarterly sales above $100 billion for the first time.
Jassy, 53, joined Amazon in 1997 after Harvard Business School, founding AWS and growing it to a cloud platform used by millions of customers, the company’s website said. He had been a clear contender for the top job since Amazon created two CEO roles reporting to Bezos years ago, the other held by recently retired consumer CEO Jeff Wilke.
Tom Johnson, chief transformation officer at global marketing firm Mindshare, said Jassy’s promotion underscored the centrality of the web hosting business to Amazon’s strategy.
“Jassy’s background in steering AWS shows just how top of mind those services are to Amazon’s business strategy. It’ll be interesting to see how that affects their strategy and balancing that priority with a growing ad business and the commerce behemoth,” he said.
Jassy is known for understanding highly technical details and has regularly taken jabs at legacy player Oracle Corp and cloud rival Microsoft Corp, which AWS continues to exceed in sales. Bezos has made fewer public remarks about competitors.
Under Jassy’s leadership, Amazon’s cloud business has signed major customers including Verizon, McDonald’s and Honeywell. Silicon Valley startups have long relied on AWS, and the division’s annual revenue grew 37% in 2019 and 30% in 2020, helping cement its position as the market leader.
One contract AWS failed to win was the $10 billion “JEDI” project from the Pentagon, which was awarded to Microsoft.
Jassy has aimed to bestow a rock-star aura to keynotes at AWS’s annual Las Vegas conference, speaking before over 60,000 attendees in 2019 after upbeat music preceded his talk.
Bezos, who already has focused on other personal enterprises in years past, said in a note to employees posted on Amazon’s website, “As Exec Chair I will stay engaged in important Amazon initiatives but also have the time and energy I need to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post, and my other passions.” Blue Origin is Bezos’ space company.
He added, “I’ve never had more energy, and this isn’t about retiring.”
Chief Financial Officer Brian Olsavsky said on a call with analysts that Bezos would work on “large one-way door issues,” such as acquisitions and other strategies where there is a high cost to reversing course.
COVID SPENDING DOWN
Amazon’s net sales rose to $125.6 billion as consumers turned to the world’s largest online retailer for their holiday shopping, beating analyst estimates of $119.7 billion, according to IBES data from Refinitiv.
Amazon shares were up less than 1% in after-hours trading.
Jassy’s AWS, traditionally a bright spot, fell slightly short of expectations in the fourth quarter. While the cloud computing division recently announced deals with ViacomCBS, the BMW Group and others, it posted revenue of $12.7 billion, short of the $12.8 billion analysts had estimated.
Amazon said it was not naming an AWS replacement for Jassy at this time.
Meanwhile Amazon’s e-commerce business has never been as big. Since the start of the U.S. coronavirus outbreak, consumers have turned to Amazon for delivery of home staples and medical supplies. While brick-and-mortar shops closed their doors, Amazon recruited over 400,000 more workers to keep up with demand.
That has placed the Seattle-based company at the center of workplace tumult. More than 19,000 have contracted COVID-19 as of September, and some staff have protested and demanded facility closures. Others, at Amazon’s Bessemer, Alabama, warehouse, are seeking to be the first at the company to unionize in the United States, with an election to begin next week.
Olsavsky told reporters on a conference call that costs associated with the pandemic in the first quarter are expected to total $2 billion, down from $4 billion in the fourth quarter as shopping volumes decrease. The company has taken an array of COVID-19 precautions and written government officials – including U.S. President Joe Biden – saying it is eager to offer vaccine shots to staff.
A boost in revenue came from moving Amazon’s marketing event Prime Day – usually in July – to October, lengthening the holiday shopping season.
Net sales for the current quarter are expected to be between $100 billion and $106 billion.
Read more on REUTERS
Twitter Ban: US, UK, EU, Others Are Hypocrites – Lai Mohammed
The Minister of Information and Culture, Lai Mohammed, has slammed the United States, the United Kingdom, the European Union and other countries that criticised the suspension of social media giant, Twitter.
Mohammed, who described the foreign countries as hypocrites, said their views were purely based on economic reasons and not because they loved Nigeria.
The minister said this on NTA’s ‘Good Morning Nigeria’ programme on Friday.
Mohammed said both the EU and the UK were already working on social media regulations and wondered why Nigeria was being accused of stifling free speech.
He added, “The EU has recommended the same thing and Britain only on Wednesday spoke about a law that would regulate the social media. This is why I say they are being hypocritical. Like I said, I don’t like commenting on issues that have to do with relations with Nigeria and other countries but clearly speaking, they are being less than honest.”
Mohammed said the Federal Government had constantly reached out to Twitter to bring down divisive comments like those of separatist leader, Nnamdi Kanu, who was fond of calling Nigeria a zoo.
He asked Nigerians not to be deceived by foreign missions condemning the suspension of Twitter.
Mohammed added, “We have seen so many foreign missions come up to condemn the action of Nigeria. Nigerians, please, make a distinction between countries that are trying to protect their economic and commercial interests from those countries that genuinely love you and talking about freedom of speech and don’t forget for one minute that it is because there is a country called Nigeria that there is freedom of speech.”
The minister maintained that the Federal Government did not suspend Twitter because it deleted a tweet by the President, Major General Muhammadu Buhari (retd.), which many found repugnant.
On the issue of Nigerians losing money to the Twitter suspension, Mohammed downplayed the complaints, saying that the Nigerian government was not generating any money in tax from the social media platform.
He said Nigerians must note that it is only when there is peace that business can take place.
Respect Your Citizens Rights – Reverse Twitter Ban US Gov Warns Buhari Again
When we talk people say we are talking again. You do not mess around with US businesses , they have powerful lobby groups and can sink your administration. Who is India ?
Sanctions are coming soon, Pompeo former CIA Director has made his statement about Buharis deception ; people now understand this regime and they are watching.
The United States government on Thursday kicked against last Friday’s decision of the Federal Government to suspend operations of the microblogging platform, Twitter, in Nigeria.
It also expressed concerns over threats of arrest and prosecution of violators issued by the Attorney-General of the Federation, Abubakar Malami.
The US government’s position was contained in a press statement by the spokesperson of the US Department of State, Ned Price.
It advised the Federal Government to respect the right of its citizens to freedom of expression by reversing the suspension.
The statement read, “The United States condemns the ongoing suspension of Twitter by the Nigerian government and subsequent threats to arrest and prosecute Nigerians who use Twitter.
The United States is likewise concerned that the Nigerian National Broadcasting Commission ordered all television and radio broadcasters to cease using Twitter.
“Unduly restricting the ability of Nigerians to report, gather, and disseminate opinions and information has no place in a democracy.
“Freedom of expression and access to information both online and offline are foundational to prosperous and secure democratic societies.
“We support Nigeria as it works towards unity, peace, and prosperity. As its partner, we call on the government to respect its citizens’ right to freedom of expression by reversing this suspension.”
Most Used Social Media Platforms In Nigeria – Top 12
MOST-USED SOCIAL MEDIA PLATFORMS IN NIGERIA – Top 12
5 FB Messenger
NIGERIANS ON SOCIAL MEDIA
As at Jan 2021, Nigeria had 33 million active social media users.
Social media users make up 15.8% of Nigeria’s population.
99.2% of social media users access them via mobile.
NIGERIA: SOCIAL MEDIA POTENTIAL ADVERT AUDIENCE
1 Youtube: 30.8 million
2 Facebook: 29 million
3 Instagram: 8.4 million
4 FB Messenger: 4 million
5 LinkedIn: 5.7 million
6 Snapchat: 6.65 million
7 Twitter: 3.5 million
MOST USED SOCIAL PLATFORMS WORLDWIDE – APRIL 2021
1 Facebook: 2.8b
2 YouTube: 2.29b
3 WhatsApp: 2bn
4 FB Messenger: 1.3b
5 Instagram: 1.29b
6 Weixin/Wechat: 1.23b
7 Tiktok: 732m
8 Douyin: 600m
9 Qq: 595m
10 Telegram: 550m
11 Snapchat: 528m
*16 Twitter: 396m*
NIGERIAN GOVTS’ TOP HANDLES ON TWITTER & FOLLOWERS
NAIRALAND VISITORS – last 9 months
Sep 2020: 33.09 million
Oct 2020: 34.67 million
Nov 2020: 29.78 million
Dec 2020: 28.41 million
Jan 2021: 29.45 million
Feb 2021: 25.99 million
Mar 2021: 27 million
Apr 2021: 26.79 million
May 2021: 29.17 million
NAIRALAND TRAFFIC STATISTICS
_Number of Unique Visitors_
Jan 2021: 4.84 million
Feb 2021: 4.29 million
Mar 2021: 4.49 million
Apr 2021: 4.31 million
May 2021: 4.33 million
MEMBERS: 2.69 million
TOPICS: 6.33 million
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