May 14, 2024 - Economy

Amazon AWS CEO Adam Selipsky to depart in June

A photo illustration of hands holding up a phone with the Amazon AWS logo on it.

Photo Illustration: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Amazon Web Services CEO Adam Selipsky, who's led the unit since 2021, will step down June 3, the company announced on Tuesday.

Why it matters: AWS is one of Amazon's most profitable businesses, accounting for more than 6o% of the company's operating income last quarter.

Driving the news: Selipsky is a 14-year Amazon veteran who was tapped for the AWS role after Andy Jassy took over the top job from Jeff Bezos.

  • Matt Garman, an 18-year veteran within AWS, will take over the mammoth cloud operation. He most recently led its sales and marketing efforts.

Between the lines: The cloud-computing unit has gotten a major boost from the explosion in generative AI.

  • Revenue in the business grew 17% in the first quarter year over year, hitting a $100 billion annual revenue run rate.
A column chart that displays Amazon Web Services' quarterly sales from Q1 2022 to Q1 2024. The y-axis represents revenue in billions, ranging from 13.5 to 24.2 billion. The chart shows a steady increase in sales over time, with a significant jump from Q2 to Q3 2022. The highest revenue, $25.0 billion, was achieved in Q1 2024.
Data: Amazon; Chart: Axios Visuals
  • In reporting earnings at the end of April, Jassy suggested the business had turned a corner from the last few years of customers puling back on new spending, saying "we think the lion's share of the cost optimization is behind us."

What they're saying: "Matt has an unusually strong set of skills and experiences for his new role," Jassy said in a statement.

  • "Matt knows our customers and business as well as anybody in the world, and has senior leadership experience on both the product and demand generation sides."
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