Amazon CEO Andy Jassy chose a new leader for the company’s problematic retail division, which is coping with a surplus of warehouse space as a result of the pandemic’s huge expansion.

Doug Herrington will be the new CEO of Amazon’s consumer sector, which will now be known as “Worldwide Amazon Stores,” according to a memo to workers from Jassy.

Since 2015, Herrington has overseen the company’s North American Consumer business.

He takes over for Dave Clark, who abruptly resigned from the corporation after 23 years earlier this month.

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Clark later stated that he will be joining the logistics company Flexport as CEO in September.

The adjustment comes as Jassy seeks to bring the Seattle-based firm to a “healthy level of profitability” in the face of growing expenses and a slump in demand, which has left the e-commerce titan with too many employees and too much warehouse space.

During the majority of the epidemic, Amazon’s revenues skyrocketed as homebound buyers switched to online shopping for products. In response, the corporation significantly increased its warehouse capacity.

However, when the number of COVID-19 cases decreased, so did demand. Excess space is now expected to contribute $10 billion in additional expenditures in the first half of 2022, according to the business. To offset some of those expenses, it is said to be intending to terminate certain leases and sublet warehouse space.

Herrington 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.

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Jassy said in the note that was later posted on the company’s website. “He is a builder of great teams and brings substantial retail, grocery, demand generation, product development, and Amazon experience to bear,”

Jassy also stated that the company’s operations will be unified under the leadership of another senior executive, John Felton, who will report to Herrington.

Source: USA today

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