In the first quarter of 2018, Amazon gave the market a big surprise. Not only did it maintain profitability for 12 quarters, but its earnings per share was almost 2.6 times the market expectation. After the financial report was released, Amazon's stock price rose, once breaking through the record high of 1617 US dollars, Bezos personal net worth also increased by more than 12 billion US dollars in one day.
But behind the eye-catching numbers, Amazon is experiencing a wave of "departure tides" that have now spread to the information products division.
On May 17, CNBC quoted informed sources that Jim Freeman, the vice president of information products for the Alexa department of the Amazon, left in April and joined Zalando, a German e-commerce company.
According to public information, Freeman first joined Amazon 9 years ago; in 2016, he left for Zalando; just 9 months later, he returned to Amazon for personal reasons. During that time, he oversaw the development of all Alexa messaging features, such as audio and video calls; he also managed Amazon’s entire video team, including Prime video and Amazon Studios.
Earlier this year, he proposed to leave to Amazon, but his superiors hope he can stay. Informed sources disclosed to CNBC that Freeman has resolved personal reasons and is determined to return to Zalando.
In fact, the departure of Freeman is just the tip of the iceberg of Amazon's "departure tide." In the past 10 months, more than 12 executives have left, including Greg Greeley, global head of Amazon Prime, Greg Greeley, and Bastian ·, Amazon’s director of marketing; Sebastian Gunningham) and Mike · Mike George, vice president of Alexa Voice Assistant and Echo Smart Speakers.
Pursue greater power
An industry source who did not want to be identified revealed to CNBC that the reason why this group of executives left is that a big reason is that going to a new company can have more power and more challenges.
For example, after Freeman went to Zalando, he was not only responsible for the business of one department, but was responsible for the entire project; the former AWS (Amazon Web Services) Gene Farrell, who joined the Smartsheet, could help the new company IPO. There is no experience in Amazon.
When Greg Greeley left Amazon to join Airbnb, a short-term rental service platform, he also said that it is time to respond to "different challenges."
On the other hand, as Amazon's business continues to grow at a rapid rate and stock prices continue to rise, the demand of other companies for their executives is also increasing. They want to use Amazon's "out of" executives to help them create similar results.
Jim Herdot, managing partner of executive search firm Herd Freed Hartz, told CNBC that many executives who are leaving will join startups such as Airbnb, WeWork and Uber. This is no coincidence. Nine of his 10 customers now choose Amazon as their favorite "poaching" destination. In the 90s, everyone wanted Microsoft executives and now Amazon.
A well-known Amazon recruiter disclosed to CNBC that after the breakthrough success of AWS and Alexa voice technology, Amazon’s image has changed from a simple online retailer to a more mature technology company, in machine learning and artificial intelligence, etc. A number of talented engineers have emerged in emerging areas. Talents in related fields have become the competition among major companies. "prey".
The salary difference is also an important reason for startups to “snake corner” Amazon.
In the "job-hopping" process, Amazon executives set a high salary worth millions of dollars. Earlier, Reuters sources said that Snap hired Amazon executive Tim · Tim Stone (Case) as the chief financial officer when the condition is: the annual salary of 500,000 US dollars, plus 20 million US dollars of restricted stock, and the election Purchase 500,000 shares of Class A shares. In comparison, Microsoft’s chief executive Satya Nadella’s salary is also US$20 million.
In addition, Gene Farrell wrote four reasons for leaving to an AWS CEO Andy & middot; Iasi, one of which involved salary issues. Farrell said: "I reviewed my current trajectory on Amazon, including my latest funding, and compared Amazon's stock price growth expectations with what I might get if I joined a start-up company." "Roughly estimate that in the next four years, my total salary at the start-up company will reach 3x to 6x. ”
Of course, there are also "high-paying" executives. For them, it is difficult for Amazon to show its own personality. It is hoped that new enterprises will receive less wages and create greater impact.
After Amazon’s acquisition of Whole Foods Supermarket, the two companies had a number of executives leaving due to major cultural differences, including the leaders of the bakery, procurement department, sustainable development department and local food department.
Tencent’s previous article mentioned that some senior food supermarket employees are disappointed with Amazon’s narrow culture and privacy preferences. A former executive even said: "Communication is really too little." "Some people also mentioned that there are fundamental differences between the two organizations in promoting and cultivating talent.
Today's Amazon is already a company with over 560,000 employees and a market value of over US$780 billion. How to retain senior executives and retain talent has also become a question that needs thinking.