Hmmm..
"September 3, 1999
Amazon Vice President Retires
Amid Firm's Expansion Problems
By GEORGE ANDERS
Staff Reporter of THE WALL STREET JOURNAL
Amazon.com Inc.'s vice president for logistics, Jimmy Wright, has decided to
retire at 45 years old, amid signs that the Internet merchant is running into
snags carrying out its ambitious warehouse-expansion strategy.
Mr. Wright, a former logistics expert at Wal-Mart Stores Inc., joined
Seattle-based Amazon in July 1998. At that time, Amazon's chief executive
officer, Jeffrey Bezos, praised him as a savvy veteran who could help Amazon
build up its shipping and distribution operations.
Mr. Wright, in a phone interview from his
Bentonville, Ark., home, said he had always
regarded the Amazon assignment as relatively
short term. "I told Jeff that I would build him a process and I would build him
a team," he said. "I've done both. My wife and I are by the pool now, and
we're talking about what kind of cattle we can raise on our ranch."
An Amazon spokesman said Mr. Wright's departure was amicable, adding that
"we wish him the best." The spokesman also said that Amazon later this month
plans to announce a top-level successor to Mr. Wright, most likely an outside
hire.
Nonetheless, Amazon officials acknowledged industry chatter that their rush
to build and operate big distribution centers isn't playing out as smoothly as
the Seattle company might have wanted. Asked to describe the status of
Amazon's distribution centers, a company official said: "This is complicated
stuff. It's challenging. It's all about execution."
Amazon has committed itself this year to adding three million square feet of
warehouse space in such locations as Coffeyville, Kan.; McDonough, Ga.; and
Fernley, Nev. Those facilities are meant to carry not just Amazon's traditional
selection of books, music and videos, but also newer additions to its sales
catalog, such as toys and electronics.
In conference calls with securities analysts this year, Amazon's CEO, Mr.
Bezos, has defended the warehouse expansion as a long-term strategic boon
for his company. But he has said that the facilities' arrival may squeeze
short-term operating margins, because they won't be operating at peak
efficiency for at least their first few months.
In Nasdaq Stock Market trading Thursday, Amazon shares rose 56.25 cents to
$60.0625.
Last month, Mr. Wright reported that he had sold 75,000 Amazon shares,
netting about $7.5 million. He said Thursday that he still owns about 10,000 to
15,000 Amazon shares, adding that by leaving the Internet merchant, he is
walking away from significant unvested options in the company's stock.
"Financially, we're fairly secure, though," Mr. Wright said. At this point, he
said, extra stock-market gains would just mean "extra money in my children's
trust funds."
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