Andy Jassy, CEO of Amazon.Com Inc., was held at the GeekWire Summit in Seattle, Washington, USA on Tuesday, October 5, 2021.
David Rider | Bloomberg | Getty Images
25-year veteran Jassy at Amazon succeeds Jeff Bezos July 5, 2021. A few days later, the stock price hit a record high. Since then, it has decreased by more than 40%, including a decrease of 35%. Second quarterThe sharpest decline in any period since 2001.
As Amazon’s second CEO since Bezos founded the company in 1994, Jassy is staring at a macroeconomic hurricane that is completely out of his control.From Fallout in progress COVID-19 PandemicRecord inflation and rising interest rates against the constraints of the supply chain, War in UkraineAmazon faces rising costs and slowing consumer spending while investors rotate from tech stocks that have driven the recent bull market.
But it’s not just the economy.There is also the threat of antitrust law Parliamentarians approach To pass a groundbreaking law that seeks to curb the power of Amazon and other tech giants. And Jasie is working on a culmination of labor disputes on Staten Island, New York, and held a warehouse vote in April. Formed the company’s first US union.. Amazon is challenging the union’s efforts in court. Meanwhile, some of the company’s top executives have taken the exit.
When Jassy officially became CEO last July, Amazon’s business was stronger than ever.The company just made that notch First $ 100 billion quarterAmazon has grown rapidly, reflecting the surge in e-commerce activity caused by the pandemic.
The story evolved rapidly. Amazon is currently reducing some of the warehouse space it added during the pandemic. And after months of labor shortages, e-commerce cooling has eliminated the need for many recent hires, and the company is now overstaffed in its fulfillment network.
Amazon announced in April as its core business slowed I made a reservation Quarterly revenue growth has been the weakest since the 2001 dot-com bankruptcy, the first quarterly loss since 2015.
Investors are now wondering if the deterioration in performance is a reflection of management struggle or just a temporary setback as the company breaks out of the pandemic and considers the sputtering economy.
When asked if Jasie was responsible for the overexpansion of warehouses and recent weaknesses in Amazon’s business, DA Davidson analyst Tom Forte said the new CEO is still benefiting from suspicion. Told.
“I still feel the answer is no,” said Forte, who recommends buying stock. “But I’m watching for years of weakness in stocks, at which point investors will start to look at Andy and take responsibility.”
It’s not just forte.Following the company’s first-quarter earnings report, several Wall Street analysts Said Amazon’s challenges may be resolved in the coming months.
But with a workforce of over 1.6 million and an investor base that has come to expect great operational excellence, Jassy has a lot to prove, regardless of economic direction.
Matt McIlwain, managing director of Seattle’s Madrona Venture Group and a longtime investor at Amazon, said in an email, “My basic belief is that big companies are at greatest risk within the company. That’s what I’m facing. ” “The key to Amazon is to continue to embrace the culture of Pioneer and make decisions with speed / agility so that they can continue to grow on their own scale.”
An Amazon spokeswoman declined to comment on the story.
Labor problems will not go away soon.
Since the union’s victory on Staten Island, Amazon has Aggressively counterattack He opposes other organizational efforts and resolutely maintains opposition to the union.Continue Report That warehouse, of Jassy’s dangerous working conditions Said Amazon’s injury rate is “sometimes misunderstood,” but Amazon acknowledged that it could do more to improve safety within the facility.
“On our scale (in 2021 alone, we hired more than 300,000 people, many of whom were unfamiliar with this type of work and needed training), rigorous analysis, thoughtful problem-solving, and what you want. We need the willingness to invent to reach the place. ” Jasie wrote in the first letter to his shareholders in April. “We have analyzed all process paths to see how we can improve further.”
Office workers have their own demands, are highly leveraged, and command higher wages, better benefits, and greater telecommuting flexibility. Last October, Amazon Recession From an office-centric culture approved Individual managers determine how often employees need to come to the office.
Amazon headquarters is virtually vacant in downtown Seattle, Washington on March 10, 2020. In response to the coronavirus outbreak, Amazon encouraged all employees in Seattle’s offices to work from home, and much of downtown was almost empty.
John Moore | Getty Images
Earlier this year, Amazon responded to the strengthening of the labor market Boost Its maximum base salary is now $ 350,000, an increase from the previous maximum of $ 160,000.
That alone is not enough to keep some of the longest-serving employees in the company. This trend preceded Jasie’s tenure. More than 45 top executives left Amazon between the beginning of 2020 and April 2021. Business insiderAn unusually high number for the company.
Under Jassy, the escape continues.Last month, 23-year-old Amazon veteran Dave Clark Resignation More than a year after taking over the role of retail manager from Jeff Wilke, one of Bezos’ top lieutenants Get off Early 2021. In late June, two prominent black leaders — Operations Executives Dave Boseman and Alicia Borer Davis, Senior Vice President of Global Customer Fulfillment and Members of the Company’s Leadership Team — publication Their departure.
Ian Freed, a former vice president of Amazon who oversaw the development of major projects such as Alexa and Kindle, said that as the company grows, it can be difficult to attract and retain the same kind of talent.
“The fact that it’s growing is a good place for innovators, engineers, marketers, retail professionals, etc. to go. Without it, it feels like a lot is starting to collapse,” Fried said. Says. “I don’t think it’s going to go away, but I think it’s always the biggest risk.”
Amazon said it has a high retention rate. The average tenure of the vice president is about 10 years, and the senior vice president is “much longer,” the company said.
Since then, investors have been looking for potential fourth or fifth pillars. They will now ask Jasie what can move the needle in a company with a market capitalization of $ 1.1 trillion.
Bezos illuminates ambitious projects like Echo smart speakers and drones with green lights, investing $ 42 million outside Amazon, “Long Now Watch” This tells us the time for the next 10,000 years and starts the space flight company Blue Origin.
Amazon CEO and Founder Jeff Bezos will be hosting the new Amazon Kindle Fire HD on Thursday, September 6, 2012, with a product introduction in Santa Monica, CA. (APPhoto / Reed Saxon)
Jassy’s big innovation was AWS. After serving as the “shadow” of Bezos in the early 2000s, Bezos personally allowed Bezos to start a cloud business. The cloud business has transformed into a $ 60 billion Jaguar notebook and has emerged as the company’s revenue center.
“Andy is visionary in itself, but different from Jeff,” Craig Berman, former Amazon Vice President of Global Communications, said in an interview. “I think it’s horribly unfair to say that Jeff is a better innovator or builder than Andy.”
At Amazon’s all-around meeting in April, Jassy reminded staff that “we were here when we were book-only retailers.” From there, the company entered music, video, consumer electronics, cloud computing, devices and streaming entertainment, Jassy said at a conference, the recording of which was acquired by CNBC.
Jassy said that when it comes to opening up new markets, the opportunities are big enough, the services are well served, Amazon has a “differentiated approach”, and the ability to do so. Or he said he would ask, “Can I acquire abilities quickly?”
“If you like the answers to these questions, we’ll take the opportunity, even if it’s really different from what you’ve done in the past,” says Jassy. “And that philosophy can be found in the different customer experiences and business segments we have pursued.”