Amazon's AWS business is getting a new CEO, and the stock is dipping

By Emily Bary

Matt Garman will succeed Adam Selipsky

Amazon.com Inc.'s cloud-computing business is getting a new leader.

The company announced Tuesday that Matt Garman, who leads sales and marketing for the Amazon Web Services business, will take over as that unit's chief executive, starting June 3.

Garman will replace Adam Selipsky, who has headed the business in the roughly three years since Andy Jassy vacated the role to become Amazon's (AMZN) CEO.

"Matt has an unusually strong set of skills and experiences for his new role," Jassy said in a note announcing the change. "He's very customer focused, a terrific product leader, inventive, a clever problem-solver, right a lot, has high standards and meaningful bias for action, and in the 18 years he's been in AWS, he's been one of the better learners I've encountered."

Garman began at Amazon in 2005 as an intern while he was doing an M.B.A. program, before coming on board as a full-time employee in 2006. He served as one of the initial product managers for AWS, according to Jassy.

Meanwhile, Jassy praised Selipsky for leaving AWS "in a strong position, having reached a $100 billion annual revenue run rate this past quarter" and posting a sequential acceleration in revenue growth. Selipsky is "now going to move onto his next challenge," Jassy continued.

Amazon shares are down about 1% in morning trading Tuesday.

Jassy expressed optimism about the overall business trajectory: "I'm excited to see Matt and his outstanding AWS leadership team continue to invent our future-it's still such early days in AWS."

-Emily Bary

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05-14-24 0946ET

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