This Friday, 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.
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