Amazon’s highly profitable division, Amazon Web Services (AWS), is undergoing a leadership change as Adam Selipsky, the current chief executive of AWS, is set to step down from his role next month, as announced by the company on Tuesday.
Selipsky, who has been with AWS since 2005, will be succeeded by Matt Garman, the current vice president of sales, marketing, and global services, starting June 3.
Selipsky’s tenure at AWS began in 2021 when he took over as CEO after Andy Jassy was promoted to lead all of Amazon.
This transition is significant as AWS accounts for a substantial portion of Amazon’s profits, making up nearly two-thirds of its overall earnings.
With AWS generating annual revenue exceeding $90 billion, it surpasses many standalone companies in size and revenue.
The leadership change comes at a crucial time for AWS as it navigates the expanding landscape of artificial intelligence and competes with major players like Google Cloud and Microsoft Azure.
Despite facing stiff competition, AWS has experienced significant growth under Selipsky’s leadership, with sales growing by over 85%.
Jassy explained that Selipsky’s tenure was intended to be short-lived, focusing on grooming the next generation of leadership within AWS.
Selipsky himself expressed gratitude for his time at AWS, acknowledging the support of customers, partners, and colleagues.
He expressed confidence in Garman’s ability to lead AWS forward.
Garman, who joined Amazon as an intern in 2005, has a strong background in AWS, having served as one of the first AWS product managers and later leading AWS Compute services before transitioning to sales leadership.
The transition to Garman as AWS CEO reflects Amazon’s strategic approach to continuity and succession planning within its key divisions.
Source-CNN
