Andy Jessy He spent years running Amazon’s AWS arm, one of the company’s fastest-growing divisions. He has now spent almost a year as CEO of Amazon.com facing great challenges.
Jeff Bezos, in July 2021, he hands over the controls of Amazon to Jassy with a mission: to reshape the largest e-commerce business in the world. During the last few years, Bezos has been experiencing some of the best moments of the company, since electronic commerce was booming and consumers were expected to reduce visits to physical stores to buy. However, 2022 is not being the best year for Amazon and Jassy is working to overcome the effects of the pandemic, because consumers are slowly returning to stores.
reduce expansion
Jassy is working on a strategy to reduce the expansion that has taken place in recent years. The Amazon founder spent large sums of money on costs related to the pandemic, because he was forced to increase security measures. Additionally, he doubled down on physical presence and increased hiring to handle a surge in online orders.
In 2021, Amazon also faced huge costs due to supply chain problems and labor shortages, along with inflationary pressures. Then, the invasion between Russia and Ukraine broke out and the price of some products rose again.
This has caused Jassy to take steps such as imposing a 5% fee on third-party US sellers who use its shipping and storage services in an effort to offset some of those costs. As well as the closure of unnecessary establishments, among them were Bookstores, Amazon 4-Star and Pop-up stores.
“We have effectively reduced our cost structure before and I am very confident that we will get back on track as we work through these last two incredibly unusual years.Jassy said Wednesday at Amazon’s first annual shareholder meeting with the new CEO.