Amazon CEO Andy Jassy on Tuesday named a new head for the company’s troubled retail business, which is dealing with a glut of warehouse space after a massive expansion during the pandemic. FOX13
The change comes as Jassy is looking to return a "healthy level of profitability" to the Seattle-based company amid rising costs and a slowdown in demand that has left the e-commerce behemoth with too many workers and too much warehouse space.Amazon saw its profits soar during most of the pandemic, when homebound shoppers turned to online shopping for goods. In response, the company massively expanded its warehousing capacity.
But as COVID-19 cases eased, demand also slowed. The company now expects excess space to contribute to $10 billion in additional costs in the first half of 2022. And to mitigate some of those costs, it has reportedly been planningHerrington joined Amazon’s senior leadership team in 2011, six years after joining the company to build out its Consumables business, a group that focuses on consumer packaged goods. He launched Amazon Fresh in 2007.
"He is a builder of great teams and brings substantial retail, grocery, demand generation, product development, and Amazon experience to bear," Jassy said in theJassy also announced the company’s operations organization will be united under another senior leader, John Felton, who will report to Herrington.
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