The Supply Chain Matters blog shares breaking news regarding the unexpected resignation of Amazon’s head of Consumer Business, Dave Clark.

 

Both The Wall Street Journal and Bloomberg are reporting this afternoon that Amazon’s Consumer Business chief, Dave Clark, has resigned.

According to the reporting by Bloomberg, this sudden departure signals that CEO Andy Jassy is seeking changes in the consumer retail division, which was admittedly overbuilt with excess warehouse capacity in 2021.

Jassy indicated in a statement the following:

The past few years have been the most challenging and unpredictable we’ve faced in the history of Amazon’s consumer business, and I’m particularly appreciative of Dave’s leadership during that time. As we shared last week during our annual shareholder meeting, we still have more work in front of us to get to where we ultimately want to be in are Consumer business.”

Clark, a twenty-three-year veteran at Amazon, was a member of the most senior management body, the “S-Team,” and has been credited with architecting the online provider’s logistics, warehousing and customer fulfillment capabilities, including two-day and same-day shipping fulfillment.

According to Bloomberg’s reporting: “Clark earned a reputation with being remorseless with underperforming employees- ne nickname was “The Sniper’- but also for being the one person with intimate knowledge of Amazon’s complex supply chain.”  Bloomberg further reported that: “Clark was among Amazon senior executives whose compensation package was singled out by investment advisory firm’s who argued that pay should be better tied to company performance.”

Clark indicated in a statement posted on Twitter: “I’ve had an incredible time at Amazon but it’s time for me to build again. It’s what drives me. To all I’ve had the honor of working with: thank you for making it so much fun to come to work every day for 23 years to invent cool, amazing things for customers.”

 

Our readers will likely recall that in 2020, Amazon was capacity constrained in its warehouse and customer fulfillment footprint and executed a significant doubling of capacity since that time. In April, the online provider reported its first quarterly loss in over seven years while delivering sober messages related to increased costs associated with online retail.

This development likely portends other management or restructuring moves to come as CEO Jassy addresses both financial and operational shortfalls in the company’s online retail business.

Stay tuned.

Bob Ferrari

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