Amazon Consumer Chief Exits as CEO Hints at More Change



Amazon.com Inc. consumer chief Dave Clark is resigning, a possible casualty of a slowdown at the crucial e-commerce business he ran.

The sudden departure signals that Chief Executive Officer Andy Jassy is looking for changes in the company’s consumer division, which overbuilt during the pandemic and left Amazon saddled with excess warehouse space that the company has since begun looking to sublet.

“The past few years have been among the most challenging and unpredictable we’ve faced in the history of Amazon’s Consumer business, and I’m particularly appreciative of Dave’s leadership during that time,” Jassy said in a statement. “As we shared last week during our annual shareholder meeting, we still have more work in front of us to get to where we ultimately want to be in our Consumer business.

“To that end, we’re trying to be thoughtful in our plans for Dave’s succession and any changes we make. I expect to be ready with an update for you over the next few weeks.”

Clark, 49, made significant contributions to Amazon during his 23 years at the company. He started out of business school in 1999, working to manage some of its earliest warehouses, then climbed up the ranks of the logistics division until taking it over in 2012. As head of global fulfillment, he introduced robots into Amazon’s warehouse and took the lead in building a transportation arm, when partners like United Parcel Service Inc. and the U.S. Postal Service proved unable to handle Amazon’s surging demand.

At founder Jeff Bezos’ behest, Clark was also putting in place the pieces for same-day and one-day delivery, which was expensive and probably contributed to the warehouse overbuilding of recent years.

Clark earned a reputation for being remorseless with underperforming employees — one nickname was “The Sniper” — but also for being the one person with intimate knowledge of Amazon’s complex supply chain. His departure leaves a big hole. “I think it’s scary for Amazon,” said a former vice president. “Clark is the architect of that network.”

During Bezos’ tenure as chief executive, Clark ran his show with little day-to-day oversight. But when Bezos stepped aside last year, Clark found himself working for Jassy, who was seeking granular details about Amazon’s businesses, according to three people familiar with the internal dynamics.

Jassy, who had a reputation for micromanaging during his time running Amazon’s cloud division, spent his first year in charge of the entire company diving into all elements of the business. That included hot topics in Clark’s world, including worker safety, said the people, who requested anonymity to discuss an internal matter. Clark wasn’t receptive to the extra attention, they said.

Amazon and Clark didn’t immediately comment on the relationship between the two men.

Clark’s move to Dallas from the tony Seattle suburb of Medina also raised eyebrows internally, the people said. The executive had been instrumental in the decisions to set up hubs for Amazon’s logistics division in Bellevue, near Seattle, as well as Nashville. At the end of his tenure at Amazon he was a plane ride away from both.

Read a profile of Dave Clark, Amazon’s ‘Sniper’ of Logistics and Consumer Businesses

Clark was among senior executives whose compensation package was singled out by investment advisory firms who argued his pay should be better tied to company performance. Clark was paid $56 million in 2021.

“To all I’ve had the honor of working with: thank you for making it so much fun to come to work every day for 23 years to invent cool, amazing things for customers,” Clark tweeted on Friday.

By Spencer Soper and Matt Day

Learn more:

How Can Viral Amazon-Native Beauty Brands Grow?

Holding companies and well-financed new Amazon aggregators alike are snapping up beauty and wellness sold exclusively on the platform. But growing them within and beyond the Amazon ecosystem will be challenging.



Credit: Source link

Discover

19,463FansLike
232,230FollowersFollow
75,262FollowersFollow
13,826FollowersFollow
2,920SubscribersSubscribe

Sponsor

spot_imgspot_img

Latest

Bitcoin Lightning Network Hits ATH, Signalling Heightened Grounds for Adoption

The Bitcoin (BTC) Lightning Network continues going through the roof by making historic highs. As a layer two scaling solution on the Bitcoin network,...

PlayStation Surveying Players on NFTs at EVO 2022

PlayStation may be eyeing a move into the non-fungible token (NFT) world as the gaming giant has been surveying its players about their...

South American Retail Giant Ripley Shows Signs of Recovery

One of South America’s most prominent retail conglomerates continues to show signs of recovery from the pandemic’s effects on its business, reporting Q1...

Bitcoin Investment Requires a Long-Term Strategy, Says Former Wall Street Stockbroker

Based on the back and forth experienced in the Bitcoin (BTC) market, a long-term approach is required when investing in the leading cryptocurrency,...

From Venice to Tokyo, Fashion’s Summer Vacation Is Over

Summer’s nearly over, and vacation out-of-office messages are being switched off in offices and design studios from Paris to Milan. After a few...
en English
X