The head of Amazon.com’s highly profitable Amazon Web Services (AWS) cloud computing unit, Adam Selipsky, will be stepping down next month after a three-year tenure. He will be leaving the company on June 3 and will be replaced by Matt Garman, a senior vice president who has overseen Sales and Marketing in AWS.
During his time at AWS, Selipsky saw rapid growth, with sales doubling from $45.4 billion to $90.8 billion and operating income nearly doubling to $24.6 billion. However, AWS has faced criticism for not being quick enough to deploy competitive generative AI services compared to its competitors like OpenAI.
Selipsky’s next steps are unclear, but he mentioned leaving the company to spend more time with his family. Despite being a dominant player in the US cloud market, AWS faces increasing competition from Microsoft’s Azure service and Alphabet’s Google, which is expected to launch new AI services. AWS contributes around 40% of Amazon’s total revenue and is considered a key growth engine for the company.
Garman, who started as an intern at Amazon in 2005 and eventually became one of its first product managers, will be taking over Selipsky’s role. Selipsky also led AWS through several rounds of layoffs, including a few hundred jobs in April, as part of restructuring efforts within the company.
Overall, Selipsky’s departure marks a significant change in leadership for AWS, with Garman set to take on the challenge of maintaining the unit’s growth and competitiveness in a rapidly evolving cloud computing market.
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