David Limp is preparing to relinquish his position as the leader of Amazon's consumer devices division later this year. In this capacity, he has been at the helm of the division encompassing Echo/Alexa products, as well as Amazon's array of Fire tablets.
(Photo : Brian Ach/Getty Images for Wired)
NEW YORK, NY - JUNE 07: Editor of WIRED Nicholas Thompson (L) interviews SVP of Devices at Amazon David Limp onstage at WIRED Business Conference Presented By Visa At Spring Studios In New York City on June 7, 2017 in New York City.
Departing from Amazon
Amazon's Senior Vice President for Devices Division David Limp is gearing up for retirement in the upcoming months, marking another significant departure of a longstanding top executive during Andy Jassy's two-year tenure as the chief executive of the e-commerce giant.
With a tenure spanning over 13 years, TechCrunch reported that Limp's impending retirement will bring to a close an era of leadership where he supervised Amazon's Alexa and an array of other services and gadgets. While some of these offerings have gained popularity, the overall profitability of the division has been a challenge.
The impending departure of Limp signals yet another shift within Amazon's core senior leadership, commonly known as the S-Team. Over the past two years, several of its members have chosen to step down, altering the management team's previous sense of steadiness prior to Jassy taking the reins.
Jassy mentioned that Limp will continue in his current position for the upcoming months, and we'll reveal his successor in the following weeks. He expressed his enthusiasm and strong optimism regarding the products and services being developed in the Devices and Services sector.
According to the CEO, this domain holds immense potential and is at an early stage, promising significant contributions to both customers and the company.
Company Challenges
In particular with the company challenges, the Echo device line has faced hurdles in generating substantial revenue, according to individuals familiar with Limp's strategy. Jassy's cost-cutting measures have targeted Limp's division, leading to the reduction of approximately 27,000 positions across the company over the past year.
During November, reports indicated that the division faced an astounding annual revenue loss of $5 billion, a figure that stands out significantly. Reuters reported that the department was among those severely affected by extensive workforce reductions. Overall, Amazon has eliminated approximately 27,000 positions, a move that aligns with CEO Andy Jassy's implementation of cost-cutting strategies in response to economic challenges.
Also Read: Amazon CEO Andy Jassy Highlights 'Multiple Generative AI Initiatives' Across All Divisions
Previous Departures
In the previous year, Dave Clark, the former CEO of Amazon Consumer, departed from the company following a 23-year tenure. A report from The Wall Street Journal revealed that this departure was partly due to tensions arising from differences in management style with Jassy, known for his hands-on approach.
Among other noteworthy departures from the S-Team since mid-2021 are Jeff Blackburn, who led the media and entertainment sectors; Alicia Boler Davis, holding the position of senior vice president of global customer fulfillment; Charlie Bell, a prominent figure in Amazon's cloud business; and Jay Carney, who held a senior role in public relations and public policy.
Related Article: Amazon VP Who Helped in Developing Alexa, Echo Devices is Stepping Down Soon: Report
