The Information analyzes the changes taking place in Amazon's leadership, as "Doug Herrington will replace Amazon’s Dave Clark as CEO of the e-commerce giant group previously dubbed Worldwide Consumer, which served as the center of power for Amazon’s retail and operations businesses over the past few years of explosive growth.
"Under Herrington, the group will look quite different—thanks to a slew of executive departures, a rebranding and a dramatic reorganization—with a greater focus on retail and consumer services. The operations team, responsible for warehousing and delivery services, will be pushed down a layer to report to one of Herrington’s subordinates.
"The shakeup reflects the deprioritization of the company’s sprawling logistics arm as CEO Andy Jassy contends with a costly glut of both warehouse space and workers, a result of overzealous internal forecasts about future growth. The shift in focus from expansion to retail services is one of the biggest changes Jassy has made during his first year as CEO."
And, the story says, "It’s not only logistics and delivery team leaders who have been pushed down the org chart. Dilip Kumar, an executive who oversaw the growth and implementation of Amazon’s cashierless-checkout technologies, now reports to Hoggett, who joined Amazon earlier this year to oversee its physical retail efforts and is a Herrington direct report. Kumar previously reported to Clark.
"Shortly after he arrived at Amazon, Hoggett was elevated to Jassy’s senior leadership team. According to an internal Amazon chart seen by The Information, he now has 10 direct reports, including the incoming CEO of Whole Foods, the executives in charge of its Fresh chain of grocery stores and the team working on rapid-delivery services for groceries."
- KC's View:
There occasionally has been speculation that Amazon is less committed to its retail business than its logistics and cloud operations, but this development seems to indicate that logistics is being put in service of retail, not the other way around.
Which suggests we're going to see a ramping up of Amazon's retail businesses, not any sort of diminution.