Adam Selipsky, the CEO of Amazon Web Services (AWS), will step down next month, as announced by the company on Tuesday. Matt Garman, currently the senior vice president of sales and marketing at AWS, will succeed Selipsky on June 3.
In a memo to employees, Selipsky explained that he is leaving AWS after 14 years to spend more time with his family. He expressed optimism about the future of AWS, stating that the current state of the business and leadership team made this an appropriate time for his transition. Selipsky mentioned his desire to recharge and consider new possibilities during his time off.
Amazon CEO Andy Jassy praised Selipsky's leadership and noted that Garman, an 18-year veteran of the company, possesses strong skills and experience suitable for his new role.
Selipsky joined AWS as CEO in 2021, succeeding Jassy when he became Amazon's CEO after Jeff Bezos. Before AWS, Selipsky was the CEO of Tableau, a data visualization software company owned by Salesforce.
Under Selipsky's leadership, AWS faced challenges such as slower revenue growth due to higher interest rates, leading to reduced cloud spending by companies. AWS also underwent multiple rounds of layoffs, impacting over 27,000 employees as part of broader company cuts.
AWS responded to increased demand for generative artificial intelligence services, driven by Microsoft-backed OpenAI. AWS invested $4 billion in Anthropic, a startup founded by former OpenAI employees, designating AWS as its primary cloud provider and utilizing AWS's AI chips.
Despite increased competition from Microsoft's Azure, which has grown its market share, AWS remains the leading cloud service provider and one of Amazon's most profitable divisions, generating $9.42 billion in operating income last quarter, accounting for 62% of Amazon's total.
Selipsky's 2022 compensation was $41.1 million, mostly in stock awards. He did not receive stock grants this year.
This announcement follows other high-profile departures from Amazon, including devices chief Dave Limp, AWS VP Chris Vonderhaar, and executives from Amazon's Alexa and hardware research teams.
Key Points
Adam Selipsky Steps Down as AWS CEO: After 14 years with Amazon Web Services, Adam Selipsky will step down as CEO to spend more time with his family. Matt Garman, currently the senior vice president of sales and marketing at AWS, will succeed him on June 3.
AWS Faces Challenges and Competition: Under Selipsky's leadership, AWS faced slower revenue growth and significant layoffs due to broader company cuts. Despite these challenges, AWS remains a leader in the cloud market, though it faces growing competition from Microsoft's Azure.
FAQs
Q1. Â What challenges did AWS face under Selipsky's leadership?
AWS faced slower revenue growth and significant layoffs due to broader company cuts. The company also had to adapt to increased competition from Microsoft's Azure and the growing demand for AI services.
Q2. How is AWS performing in the cloud market?
AWS remains the leading cloud service provider and is highly profitable, though it faces growing competition from Microsoft's Azure.
Q3. What was Adam Selipsky's role before becoming CEO of AWS?
Before becoming CEO of AWS, Adam Selipsky was the CEO of Tableau, a data visualization software company owned by Salesforce.
Reference
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