Why only the return of Jeff Bezos can reverse Amazon’s decline

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In subsequent years, Amazon launched the Echo smart speaker and voice assistant Alexa, which entered the popular lexicon — people “ask Alexa” just like “Google it.”

Bezos is known for influencing the management ethos of many tech companies. His “double pizza rule” stated that any meeting should be small – with only enough to feed from two boxes of pizza. His “Day One” philosophy insisted on turbulent innovation and avoiding stagnation.

However, there is evidence that this focus has skewed. His huge personal investment in the rocket company Blue Origin – worth $1 billion a year – and his philanthropic endeavors diverted his attention. Before he left, he only spent a few days each week on Amazon.

However, his departure as CEO in 2021 surprised his nominated successor, Jassy, ​​who told an event recently: “I really didn’t think Jeff would do anything different… I spent most of the first part of that conversation asking if he was sure he wanted to do something different. change “.

Wall Street tech analyst Dan Ives says Jesse has dealt a tough hand after the Bezos era. “Amazon was bloated under Bezos and now needs to cut more,” he says. “There is more pain waiting for Amazon.”

“Is Jassy under pressure?” says Mark Taylor, Head of Trading at Mirabaud Group. Yes, but he did get a hospital pass from Bezos. It’s a structural problem in retail so he’ll have time.”

While some investors may be frustrated by falling stock prices, Jassy has long been one of Bezos’ most trusted lieutenants. For two decades, he has spearheaded AWS and helped launch it alongside Bezos. The division has been responsible for large portions of Amazon’s profits in recent years. “Gus still has Jeff’s ear,” says Philip Green, a former Amazon executive.

He adds that AWS is “well positioned” as other companies make investments in AI, because it provides its computing power. Amazon is still claiming market share from traditional delivery companies like Royal Mail.

The consumer market has shifted [but] Amazon is an infrastructure company. This provides advantages.”

In November, Amazon became the first publicly traded company to lose $1 trillion in value. Gacy said in his note to the staff.

“Amazon has weathered difficult and uncertain economies in the past, and we will continue to do so.” Gacy called on employees to be “resourceful and gullible” amid the economic downturn. Question marks remain about how much backtracking Bezos will tolerate before he gets involved.

Amazon shed 18,000 jobs in the largest downsizing in its history

by Matthew Field

Amazon will cut 18,000 jobs in the biggest round of cuts in its history as it curbs investment in brick-and-mortar stores and Alexa-powered smart speakers.

Amazon CEO Andy Jassy confirmed the scale of the layoffs early Thursday morning, blaming an “uncertain economy” and over-hiring during the pandemic. The losses of 18,000 were larger than expected by company sources, which were poised for about 10,000 jobs.

The online retailer said jobs will be carried across its “stores” business, which includes its online retail division and brick-and-mortar stores. Digital sales have slowed since Covid restrictions eased, while the company’s newly launched stores have failed to break traditional brands’ hold on consumers.

It will also shrink its internal technology teams. At the same time, Mr. Jassy confirmed a surplus in Amazon’s hardware business, which includes its Alexa-powered Echo smart speaker team, and its books division.

The company said most employees were kept in the dark about whether they were at risk until January 18. The cuts will affect teams in Europe.

The figure represents about 6% of the company’s staff, although only about 1% of the broader employee count of 1.6 million, which includes casual and seasonal employees in its warehouse and logistics.

Jassy, ​​who took over the CEO role from founder Jeff Bezos in July 2021, said the companies are no longer “in expansion mode for heavy people this year” amid the economic gloom. He said the company will focus on “simplifying” to find out “what matters most to customers.”

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