Bezos has been Amazon's CEO since its founding in 1995. The company grew from an online bookseller into a $1.7 trillion global retail and logistics, which impacted the world's economy and made Bezos one of the world's richest people. Jassy, a Harvard graduate, has worked for Amazon since 1997 and currently serves as CEO of the company's cloud business, Amazon Web Services. 

In the early 2000s, Mr. Jassy became Mr. Bezos’ “shadow,” accompanying him to meetings and on business trips. He eventually laid the foundation for Amazon Web Services, the cloud computing business, which he grew into an engine of innovation and profit. The cloud business generated $45 billion in sales last year, up 30 percent from a year earlier.

Bezos said in his Tuesday letter that he is excited about the transition, which will free up more time for him to work on outside projects. As executive chair of Amazon, he will focus on "new products and early initiatives," he said.

"Being the CEO of Amazon is a deep responsibility, and it's consuming," Bezos wrote. "When you have a responsibility like that, it's hard to put attention on anything else. As Exec Chair I will stay engaged in important Amazon initiatives but also have the time and energy I need to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post, and my other passions. I've never had more energy, and this isn't about retiring. I'm super passionate about the impact I think these organizations can have."

He added that Jassy "will be an outstanding leader, and he has my full confidence."
Jassy was an obvious choice after Jeff Wilke, the head of the company's worldwide consumer division and another longtime member of Amazon's leader group announced his retirement in August.