Will Amazon’s collapse prompt Jeff Bezos to return to lead the company? – Business AM

 Will Amazon's collapse prompt Jeff Bezos to return to lead the company?  - Business AM

Collateral victim of inflation, the largest e-commerce site in the world saw its share price collapse in 2022. Verdict: nearly 50% of its market value went up in smoke. Unfortunately for Amazon, the outlook for the next few months doesn’t look any better.

News: company co-founder Jeff Bezos, who passed the torch in 2021, may well be forced back into his role as CEO to get Amazon back on track.

  • This is in any case the idea defended by the financial analyst Michael Batnick, director of research at Ritholtz Wealth Management, with CNBC.

The detail : ” it is [la] worst year [d’Amazon] since 2000, when the Internet bubble burst”, indicated the analyst to underline how much the company was in bad shape and required a strong reaction to ward off fate.

  • The return of Jeff Bezos, emblematic figure of Amazon, but not only, could be this strong measure.
  • The latter could be particularly motivated by this possibility because his personal fortune is intrinsically linked to the good health of the company. If it does badly, the Amazon shares he owns are bound to be worth less and therefore his wealth decreases.
    • His personal fortune has grown from around $200 billion when he left the company in 2021 to just under $100 billion today.
  • Moreover, who better than the one who has been at the head of Amazon for almost 30 years to raise the bar?

“Jeff Bezos is an extremely wealthy man who got a lot less wealth in the last year because the business he spent his life building fell on hard times. I think that [son retour à la tête de l’entreprise] is possible. I wouldn’t put my hand to cut on that, but I think it’s possible he’ll come back to the helm to steady the ship.”

said analyst Batnick.

A real benefit

The fact is, just announcing that Jeff Bezos is back as head of Amazon could be good for the company. This could indeed have a psychological impact not superfluous on the employees, but also on the investors who could again be in a hurry to invest, confident that the former CEO has the necessary skills to lead the boat, unlike his replacement. , Andy Jassy.

  • Whoever replaced Jeff Bezos has suffered many difficulties since his arrival. In addition to the pandemic which still raged for a while – a period which nevertheless proved to be particularly beneficial for Amazon’s business – Andy Jassy had to deal with supply problems linked to the health crisis, but also, and above all , generalized inflation, as well as the desire to unionize its American employees.
  • These difficulties have also been compounded by pressure from public authorities seeking to limit the power of Big Tech, particularly in terms of monopoly.

So certainly, the difficulties encountered by Amazon are not the fault of Andy Jassy, ​​but for some, he makes an ideal scapegoat.

“While this is certainly not Jassy’s fault – many decisions were put in place when Bezos was at the helm – there are accusations that will continue into next year if they haven’t already”

It wouldn’t be the first

The return of Jeff Bezos to the head of Amazon some time after leaving his post would not be a first. Several other CEOs have already returned to the office shortly after passing the torch. We talk about “CEO Boomerang”.

This was particularly the case recently with Bob Iger who returned to the head of Disney very quickly after taking a step aside, while the firm with big ears was going through difficulties. Same observation at Apple, Starbucks or Twitter.

Will Jeff Bezos be next? This is possible in 2023. The businessman who still chairs the company’s board of directors is still very active today in his other company, Blue Origin, so it would not be very surprising.