Can Amazon CEO Andy Jassy turn the company around?

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If Jeff Bezos\u0027 handpicked successor Andy Jassy has a vision for Amazon.com Inc.\u0027s future, now would be the time to spell it out. Read more.

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His first challenges are to rein in the costs of Amazon’s pandemic-era expansion and respond to greater scrutiny from lawmakers and the general public, stakeholders that have grown more sceptical of the e-commerce juggernaut since the pandemic abated. His decisions are also hampered by Amazon’s balance sheet. Prior to the pandemic, the company’s multiple high-margin operations drove up net income. That was supercharged by the boom in sales in 2020.

New business lines such as groceries, advertising and health care were still in their infancy but looked poised to become new “pillars” of the company. An US$8.45-billion deal to acquire the storied movie studio MGM illustrated Amazon’s aspirations in video content, as did spending US$1 billion creating a Lord of the Rings TV series and billions more on sports rights including the NFL and the England’s Premier League.

Although he says Amazon would probably make the same decision again, the executive responsible for much of the expansion, Dave Clark, has since left the company. Jassy ducks any suggestion that Amazon hoarded talent during the pandemic, or that its startling rate of employee growth was irresponsible. “We must be humble and thoughtful about even the secondary effects of our actions,” read one, in relation to the company’s growing impact, primarily on the planet. Another says Amazon must “strive to be the world’s best employer,” added in the wake of a unionization movement that took the company by surprise in April 2022.Article content

“I have tried to spend some time understanding what some of the concerns people may have about the company are,” Jassy says. “If you don’t spend enough time sharing what’s really happening, people will fill that vacuum. So we’re just trying to make sure we have that open dialogue.”Andy Jassy Compared with the company’s previous comments on the supposed motives of regulators — Amazon has accused the FTC of bias and harassment against the company and its executives — Jassy seems ready to cut a more diplomatic posture in 2023.

“Amazon has to be cognizant of this massive trend towards intelligent and generative apps. Amazon needs to have its strategic response.”Jassy says he sees “opportunities” to work with smaller companies in the space, but would not elaborate. One of them, Stability AI — a competitor to the Microsoft-backed OpenAI — is already integrating its software with the AWS platform.

 

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