Shulou(Shulou.com)11/24 Report--

On the morning of March 21, Beijing time, it was reported that two years ago, when Amazon founder Jeff Jeff Bezos handed over his handsome seal to Andy Jassy, head of cloud computing, few investors or analysts had doubts.

Jassi, a close confidant of Bezos, is not only a veteran of Amazon, but also enjoys a high reputation in the company and industry, and the Amazon Cloud Service (AWS), which he founded, has become one of the most valuable businesses in the world. Analysts at Wedbush, an investment bank, even said confidently that the transition would be "very smooth and almost insignificant".

Unfortunately, Jassi's brief CEO career did not go well.

Since Jassi officially took over Bezos in July 2021, Amazon has experienced its most turbulent period since the dotcom bubble burst. The company recorded its slowest revenue growth since it went public last year, and Jassi was even forced to take a series of cost-cutting measures-Amazon's business was booming even during the COVID-19 epidemic. So no one expected such a tech giant to be in such a predicament.

Since Jassi became CEO on July 5, 2021, Amazon shares have fallen 44 per cent. In January, Amazon just announced 18000 job cuts, while on Monday, Gassi announced that he would cut another 9000 jobs. Although the layoffs account for a small proportion of Amazon's workforce, it is shocking for a top technology company that has been running almost all the way over the past 25 years.

"in view of the uncertainty in our economic environment and uncertainty in the near future, we choose to further streamline costs and personnel," Jassi told employees in an email. "

Mr Jassi's misfortune stems mainly from bad luck-high inflation in the US has forced the Fed to raise interest rates, curbing the growth of the US technology industry as a whole. Whether it's bad luck, bad self-decision, or both, the second CEO in Amazon's history no longer seems to be an enviable character.

His predecessor, Bezos, transformed Amazon from an online bookseller into a technology giant that spans retail, cloud computing and advertising, and is known for its atmosphere of innovation and entrepreneurship. While Bezos was at the helm, the company developed breakthroughs such as Kindle e-book readers and Echo smart speakers, as well as new vertical areas such as homemade content, healthcare and brick-and-mortar stores.

So far, the main tone of Jassi's era has been to "live frugally", reducing Amazon's investment in experimental projects as much as possible.

Over the past year, Jassi has been cutting back on spending across the company. Many projects that have yet to see results have been cut, including Scout distribution robots, virtual travel services, Care telemedicine projects and video calling devices for children. He closed all 4-Star, Pop Up and Books stores, and announced the closure of some Fresh supermarkets and Go cashless convenience stores earlier this year. Bezos's favorite drone distribution program is also struggling because of cost-cutting plans.

The epidemic fuelled the e-commerce industry, and Amazon took the opportunity to double the size of its business between 2020 and 2022. As the number of people increased, the stock price also rose sharply. But as the economy restarted and e-commerce sales stagnated, Amazon found its facilities redundant and difficult to use effectively, and was eventually forced to close, cancel or postpone the construction of many new warehouses.

Earlier this month, Amazon suspended the second phase of its new HQ2 campus in Arlington, Va. Construction projects in Nashville, Tennessee and Bellevue, Washington have also been shelved, in part because many Amazon employees have been telecommuting since the outbreak.

Jassi is under great pressure to prove that he can control spending. But to revive the enthusiasm Bezos has injected into Amazon culture, new sources of growth must be found.

Amazon barely made a profit in the fourth quarter of last year, and its first-quarter earnings expectations were disappointing, and revenue growth could even fall to single digits.

When Bezos announced the handover in 2021, he certainly did not expect this situation.

"Amazon's position for the future couldn't be better." "We are doing our best to meet the needs of all walks of life," Bezos wrote in an employee letter at the time. What we are brewing will continue to shock the world. "

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