In a blog post on Thursday, Amazon announced that Jeff Wilke and Andy Jassy had been promoted to CEO Worldwide Consumer and CEO Amazon Web Services, respectively. Previously they were senior vice presidents of those divisions.
In his letter to shareholders earlier this week, Jeff Bezos noted the growth of the company into a multi-pronged business. "AWS, Marketplace and Prime are all examples of bold bets at Amazon that worked, and we're fortunate to have those three big pillars," he wrote.
In its post on Thursday, Amazon cited that line, adding that it only made sense to change the titles of those pillars. The post noted, however, that this should not be seen as a reorganization, but rather as "a recognition of the roles they've played for a while."
Wilke had been senior vice president of Worldwide Consumer since 2012. Prior to that he was SVP of three different business in succession: North American Retail, Worldwide Operations and Customer Service, Operations. He first joined the company in 1999.
Jassy has been at Amazon since 2003, starting out as Vice President of Associates and Web Services and becoming Senior Vice President of Amazon Web Services in 2006.
"It's probably similar to Alphabet promoting heads of businesses to CEO titles versus just division heads," said Needham & Company analyst Kerry Rice. "I think it's a recognition and attempt to retain key employees."
While the promotions may appear to be mere name changes, they could potentially signal a new future for the company, including a possible succession plan for Bezos and/or signaling a potential AWS spinoff.
"[We] have been convinced AWS would be spun off as a controlled subsidiary since they started breaking out financial details, so this gives me more confidence in that prediction," Wedbush analyst Michael Pachter said.