WEBVTT - Amazon CEO Andy Jassy 0:00:00.120 --> 0:00:02.040 Thank you Andy so much for coming down. It's really 0:00:02.080 --> 0:00:04.280 wonderful to have you here in person. It's my pleasure 0:00:04.280 --> 0:00:05.920 to be here. Thanks you. Has found out we actually 0:00:05.920 --> 0:00:09.559 lived in the same dorm in college, just a few 0:00:09.600 --> 0:00:12.880 years apart. So it's been almost a year since you 0:00:12.920 --> 0:00:15.840 took over from Jeff as CEO of Amazon, and it's 0:00:15.840 --> 0:00:18.560 been a year of first the first stock split since 0:00:18.560 --> 0:00:21.640 the dot com boom, the first vote to unionize an 0:00:21.640 --> 0:00:26.400 Amazon warehouse, your first Bloomberg Technology conference. Thank you. I 0:00:26.400 --> 0:00:31.360 want to start with a quick report card. I'm Emii Chang, 0:00:31.360 --> 0:00:33.440 and welcome to this edition of the Bloomberg Studio One 0:00:33.479 --> 0:00:43.479 point oh podcast. In February one, Jeff Bezo shocked the 0:00:43.520 --> 0:00:46.720 world by announcing plans to step down as Amazon CEO. 0:00:47.360 --> 0:00:50.160 A few months later, he passed the reins to Andy Jase, 0:00:50.479 --> 0:00:53.360 his longtime top lieutenant, the architect of one of the 0:00:53.400 --> 0:00:57.840 company's biggest profit engines, Amazon Web Services, Bezos has stayed 0:00:57.840 --> 0:01:01.480 on as executive chair, leaving Jazz to navigate a critical 0:01:01.520 --> 0:01:05.440 inflection point in Amazon's history. How does the company manage 0:01:05.440 --> 0:01:09.280 market turmoil, rising inflation and regulatory scrutiny, and a push 0:01:09.360 --> 0:01:13.280 by some warehouse workers to unionize, all while keeping customers 0:01:13.280 --> 0:01:16.200 coming back joining me on this edition of Bloomberg Studio. 0:01:16.200 --> 0:01:19.720 At one point, oh, Amazon second CEO Andy Jassey, he 0:01:19.840 --> 0:01:23.600 joined us from our flagship Bloomberg Technology Summit in San Francisco. 0:01:26.360 --> 0:01:30.480 I'd like you to grade your view of Amazon's performance, 0:01:31.120 --> 0:01:33.440 and we've got time later to to really dig in. 0:01:33.800 --> 0:01:36.640 But quickly, how would you grade Amazon's performance over the 0:01:36.720 --> 0:01:40.280 last year with customers. Well, I think we've you know, 0:01:40.640 --> 0:01:43.520 I'm not sure I'm the right person to grade myself 0:01:43.880 --> 0:01:46.360 during the year or not, but I'll give you my take. 0:01:46.400 --> 0:01:48.480 You know, I think with respect to customers, I think 0:01:48.480 --> 0:01:50.320 we've done a lot of good, you know. And I 0:01:50.360 --> 0:01:53.400 think if you look at during the pandemic, which really 0:01:53.440 --> 0:01:56.680 has extended until the early part of this year, you know, 0:01:56.840 --> 0:02:00.400 so much as a ppe and food and central items 0:02:00.400 --> 0:02:04.440 and people equipping their home offices were bought from Amazon, 0:02:04.520 --> 0:02:07.600 and you know, to scale the way we needed to. Remember, 0:02:07.640 --> 0:02:11.320 in two thousand twenty, we grew thirty nine percent year 0:02:11.320 --> 0:02:14.280 over year on a two billion dollar revenue run rate. 0:02:14.280 --> 0:02:17.080 I mean, it's very it's unprecedented, it's never happened before. 0:02:17.440 --> 0:02:19.360 But it was really hard to do that, and we 0:02:19.400 --> 0:02:23.120 had to take the really big footprint of fulfillment center 0:02:23.160 --> 0:02:25.600 footprint we built the first twenty five years of Amazon 0:02:26.080 --> 0:02:28.600 and double it in twenty four months. We built out 0:02:28.680 --> 0:02:31.880 that transportation network in just a couple of years. You know, 0:02:31.960 --> 0:02:34.840 we nearly doubled the size of our workforce during that time. 0:02:34.960 --> 0:02:37.120 And I think you saw it in other businesses. You know, 0:02:37.120 --> 0:02:40.239 a WS is a really big part of helping companies 0:02:40.280 --> 0:02:44.359 and governments have business continuity during the pandemic, and so 0:02:44.400 --> 0:02:46.880 many companies and organizations in the last year made the 0:02:46.880 --> 0:02:49.600 strategic decision that they were going to stop running their 0:02:49.639 --> 0:02:54.040 own infrastructure technology and disproportionately chose AWS to help them 0:02:54.040 --> 0:02:56.000 move to the cloud. And we spent a lot of 0:02:56.040 --> 0:02:58.960 time helping them make that transformation. So what about investors, 0:02:58.960 --> 0:03:01.520 I mean, the stock is down significantly from a peak 0:03:02.040 --> 0:03:06.280 last year. Obviously there's broader market term WEIL. Yeah, I think, 0:03:06.720 --> 0:03:09.720 you know, for investors and financially, I'd say it's mixed. 0:03:09.919 --> 0:03:12.520 You know, I think we have some businesses that are 0:03:12.520 --> 0:03:15.359 growing really strongly. If you look at AWS, you know, 0:03:16.639 --> 0:03:20.400 grew year every year. You know, it's not a seventy 0:03:20.400 --> 0:03:23.359 four billion dollar revenue run right business. It's pretty unusual growth, 0:03:23.400 --> 0:03:26.000 and we grew fifty percent year every year in our 0:03:26.040 --> 0:03:28.800 advertising business. You know, it's the thirty two billion dollar 0:03:28.880 --> 0:03:32.239 revenue run right business. So some business has grown really strongly, 0:03:32.280 --> 0:03:35.400 and you know, we've continued to grow in our retail 0:03:35.440 --> 0:03:40.240 business despite pretty crazy comparables during I think the real 0:03:40.680 --> 0:03:42.880 challenge for us there is on the cost side, and 0:03:43.040 --> 0:03:45.720 there have been several things that have happened, um, some 0:03:45.880 --> 0:03:47.920 of which are more controllable than others, you know. I 0:03:47.960 --> 0:03:51.080 think the part that's less controllable is really around inflation. 0:03:51.200 --> 0:03:53.400 And I think we thought that inflation would start to 0:03:53.440 --> 0:03:56.840 attenuate in two and with the war in Ukraine, it 0:03:56.920 --> 0:03:59.440 just went the other way and it's significantly accelerated. So 0:03:59.520 --> 0:04:02.520 the cost to trucking and line hall and ocean and 0:04:02.600 --> 0:04:06.680 air and fuel has just substantially gone up, and I 0:04:06.720 --> 0:04:08.720 think that will tenuate at some point. No one knows 0:04:08.760 --> 0:04:11.880 how long that will take. I think the more controllable 0:04:11.920 --> 0:04:16.279 areas for us are really around fulfillment center capacity and productivity. 0:04:16.360 --> 0:04:18.720 It was taking about twenty four months to build new 0:04:18.800 --> 0:04:21.880 filming centers during the pandemic, and so we had to 0:04:21.880 --> 0:04:24.359 make decisions, you know, in mid two thousand, twenty in 0:04:24.360 --> 0:04:27.640 early one on how much demand we're going to plan for, 0:04:27.839 --> 0:04:30.640 and so you know, we we end up with more 0:04:30.680 --> 0:04:33.080 capacity and we need right now. And there's a number 0:04:33.080 --> 0:04:35.080 of things that we're working on. We when we've stopped 0:04:35.080 --> 0:04:37.120 building on properties where we don't need it yet, and 0:04:37.160 --> 0:04:39.880 we've let a number of leases lapse and not a 0:04:39.920 --> 0:04:42.160 small number, you know, of both those things. We've had 0:04:42.200 --> 0:04:44.480 a lot of occasions in our history where we've worked 0:04:44.480 --> 0:04:47.000 on productivity and made improvements, and we have a lot 0:04:47.000 --> 0:04:49.800 of clearly defined niches and I'm confident we'renn get back 0:04:49.839 --> 0:04:51.400 to the right level of profitability. You are going to 0:04:51.480 --> 0:04:54.440 sub lease thirty million square feet of space? Is there 0:04:54.440 --> 0:04:57.719 a mistake and the execution there because of the overball Again, 0:04:57.839 --> 0:05:00.400 because you have to make these decisions, it is two 0:05:00.440 --> 0:05:03.360 years in advance. And again, if you put yourself back 0:05:03.400 --> 0:05:06.640 in where we were growing thirty nine percent year over 0:05:06.640 --> 0:05:09.240 a year on a two billion dollar revenue run rate, 0:05:09.880 --> 0:05:12.440 it's very hard to know what's the right amount to 0:05:12.480 --> 0:05:14.560 build and you have to make a decision. And we 0:05:14.680 --> 0:05:17.159 made the decision to air on the side of our 0:05:17.160 --> 0:05:20.880 consumers and sellers. Now, how would you grade Amazon's performance 0:05:20.920 --> 0:05:24.760 with employees, your colleagues. There has been some high profile Yeah, 0:05:24.800 --> 0:05:28.880 I think that, um. And when I started in this gig, 0:05:29.360 --> 0:05:33.159 we had just created a new leadership principle to strive 0:05:33.240 --> 0:05:35.279 to be Earth's best employer, and I think we're you know, 0:05:35.320 --> 0:05:37.880 we spent a lot of time trying to think through 0:05:37.880 --> 0:05:40.719 what that really means is broad and I think we've 0:05:40.760 --> 0:05:42.800 made a fair bit of progress, but it's still early 0:05:42.839 --> 0:05:45.679 in my opinion, But I still think there are many 0:05:45.720 --> 0:05:49.760 areas that we can keep improving, you know, And I think, um, 0:05:49.800 --> 0:05:52.400 you know, the first one I had mentioned is safety. 0:05:52.520 --> 0:05:55.440 You know, I think that, um, you know, in our 0:05:55.480 --> 0:05:58.320 fulfillment centers, that is the top priority. And you know, 0:05:58.360 --> 0:06:00.359 when you get into the details and then bors an 0:06:00.400 --> 0:06:01.839 outside of all the spin of it all, you know, 0:06:02.040 --> 0:06:05.360 we're about average there. But we're not trying to be average, 0:06:05.440 --> 0:06:07.120 you know. We want to be the best in the 0:06:07.160 --> 0:06:08.839 industry and the best in the world at it. And 0:06:09.360 --> 0:06:12.080 that's a high priority in an area that I'm passionate 0:06:12.080 --> 0:06:14.080 about and the team is passionate about. And I think 0:06:14.120 --> 0:06:16.359 we have a lot of work we can do to 0:06:16.520 --> 0:06:19.719 make our employees everyday lives easier, and we have We've 0:06:19.720 --> 0:06:23.120 identified kind of a top hundred list of of areas 0:06:23.120 --> 0:06:25.920 that we can be better at that we're just metronomically 0:06:25.960 --> 0:06:28.160 stepping through, and so we've made a lot of progress, 0:06:28.160 --> 0:06:29.640 but we have a lot of work to just still. 0:06:29.760 --> 0:06:32.520 Elon Musk just came out saying he has a super 0:06:32.560 --> 0:06:35.680 bad feeling about the economy Tesla laying off ten percent 0:06:35.760 --> 0:06:38.880 of his staff. Jamie Diamond says he's preparing for an 0:06:38.920 --> 0:06:42.839 economic hurricane. The World Bank just slashed its forecast for 0:06:42.880 --> 0:06:47.400 global growth. How do you feel about the economic climate. Well, 0:06:47.400 --> 0:06:52.359 it wasn't planning on giving any guidance to please, but 0:06:52.920 --> 0:07:00.720 super bad or super super bad, I think, uh, there's 0:07:00.760 --> 0:07:04.880 some things that relates to Amazon that are useful to remember, 0:07:05.000 --> 0:07:09.320 you know. I think the first pieces remember that five 0:07:10.160 --> 0:07:14.600 of the of the worldwide retail market segment share is offline. 0:07:15.080 --> 0:07:17.520 And if you believe that that equation is going to 0:07:17.600 --> 0:07:19.400 flip at some point, which we do, I think it 0:07:19.440 --> 0:07:22.040 will will flip over a long period of time. If 0:07:22.080 --> 0:07:25.240 you look at different down turns um you know, should 0:07:25.240 --> 0:07:26.920 we have one at some point and we've been through 0:07:26.920 --> 0:07:28.880 a few obviously in the twenty five years that I've 0:07:28.880 --> 0:07:33.360 been at Amazon, customers changed their habits and so you know, 0:07:33.440 --> 0:07:36.720 I also think there's you know, those two reasons. Those 0:07:36.760 --> 0:07:39.320 two factors give me some optimism that even if we 0:07:39.360 --> 0:07:42.400 have a downturn, that we have the potential to still grow. 0:07:42.440 --> 0:07:44.840 But we have a road map that's you know, probably 0:07:44.880 --> 0:07:46.880 three to five years long, and we're going to continue 0:07:46.880 --> 0:07:48.960 to invent, We're going to continue to be insurgent, and 0:07:49.640 --> 0:07:51.000 we have a lot of work to do to get 0:07:51.040 --> 0:07:53.720 to where we think we ultimately can get for customers. Now, 0:07:54.040 --> 0:07:57.520 when it comes to the stock, as I mentioned, it 0:07:57.560 --> 0:08:01.239 has fallen significantly. Do you think investor are missing something 0:08:01.400 --> 0:08:04.080 or has tech just been overvalued? And this also of 0:08:04.080 --> 0:08:09.000 course matters to employees who are significantly paid in stock. Well, 0:08:09.480 --> 0:08:12.560 you know, look, I haven't been at Amazon for twenty 0:08:12.560 --> 0:08:14.800 five years. I arrived at the company three weeks before 0:08:14.800 --> 0:08:17.840 we went public. I have never tried to predict what 0:08:17.880 --> 0:08:19.880 the stock is going to do, and any time I've 0:08:20.080 --> 0:08:22.720 tried to a little bit, I've been wrong. So, you know, 0:08:22.880 --> 0:08:26.920 I think it's I think it's pretty hard to um uh, 0:08:27.120 --> 0:08:28.520 pretty hard to predict what it's going to be in 0:08:28.600 --> 0:08:32.080 any short period of time. I do really believe that Benjamin, 0:08:32.320 --> 0:08:36.040 that Benjamin Graham maximum that um in the short term, 0:08:36.320 --> 0:08:39.199 the stock market tends to be a voting machine. In 0:08:39.240 --> 0:08:41.079 the long term, it tends to be weighing machine. And 0:08:41.120 --> 0:08:42.720 I think if you you know, we've been through a 0:08:42.760 --> 0:08:48.120 lot of points in twenty five years at Amazon where 0:08:48.160 --> 0:08:52.080 the macro factors are off and UM stocks are down. 0:08:52.160 --> 0:08:56.080 Our stock is down, but you can't really control that, 0:08:56.160 --> 0:08:58.320 you know. We have a concept. We talked about a 0:08:58.320 --> 0:09:01.360 lot of Amazon inputs and outputs, you know, and the 0:09:01.440 --> 0:09:03.640 ultimate output for a company as share price, you know, 0:09:03.679 --> 0:09:06.480 and then other big outputs are free cash flow or 0:09:06.600 --> 0:09:09.720 profit or revenue. You can't really manage the outputs. You 0:09:09.760 --> 0:09:12.440 have to manage at the input level, and that's where 0:09:12.480 --> 0:09:14.679 we spend all our time. And so if you do 0:09:14.760 --> 0:09:17.480 the right things for the business, long term, things tend 0:09:17.520 --> 0:09:19.439 to work out. I think we've had very good returns 0:09:19.480 --> 0:09:21.720 for investors and I expect that to be true. Again, 0:09:21.920 --> 0:09:25.000 what are the moon shots at Amazon that are capturing 0:09:25.120 --> 0:09:27.280 most of your time and attention? What is going to 0:09:27.360 --> 0:09:30.040 define the next era of Amazon? I mean, is it 0:09:30.120 --> 0:09:34.000 is it astro the home robot, or is it something else? Well, 0:09:34.040 --> 0:09:36.200 you know, we have a unique way that we look 0:09:36.240 --> 0:09:39.080 at big new investments and I'm not sure it's right 0:09:39.160 --> 0:09:41.600 or wrong, it just happens to be our way. And 0:09:41.920 --> 0:09:47.400 we ask ourselves when we're considering something four questions. We ask, uh, 0:09:47.440 --> 0:09:49.640 if it's successful, can to be big and move the 0:09:49.640 --> 0:09:53.280 needle in Amazon? Is it being well served today? Do 0:09:53.360 --> 0:09:57.160 we have a differentiated approach? And do we have competence there? 0:09:57.160 --> 0:09:59.320 And if not, can we acquire quickly? If we like 0:09:59.480 --> 0:10:01.959 the answer to as questions, we'll go pursue it with 0:10:02.000 --> 0:10:04.160 a single thread of team that isn't distracted by the 0:10:04.200 --> 0:10:07.800 rest of the business. And sometimes that leads to innovation 0:10:07.920 --> 0:10:10.640 investments that seemed pretty obvious, Like you know, when I 0:10:10.679 --> 0:10:12.880 got to the company, was the books only retailer, and 0:10:12.880 --> 0:10:16.040 then we expanded to music and video and electronics and choice. 0:10:16.080 --> 0:10:19.080 It seems obvious to people. Other times that process does 0:10:19.120 --> 0:10:22.319 not lead to investments that seem obvious to people. I mean, 0:10:22.360 --> 0:10:26.480 AWS was something that people externally and internally thought was 0:10:26.520 --> 0:10:29.199 a little bit nutty at the time. But just imagine 0:10:29.240 --> 0:10:32.640 what Amazon would be today without AWS. And and I 0:10:32.679 --> 0:10:35.200 think that you see the same thing here. You know 0:10:35.280 --> 0:10:38.559 that there are so many significant investments from making that 0:10:38.640 --> 0:10:41.440 I'm excited about. I'm gonna have to constrain myself to 0:10:41.480 --> 0:10:44.679 a few. But you know, I'm really excited about what 0:10:44.679 --> 0:10:47.360 we're doing in the prime video space. I think we're 0:10:47.440 --> 0:10:50.440 clearly on the right track there and building a significant business. 0:10:50.559 --> 0:10:54.560 That's interesting because Netflix also just announced some layoffs, first 0:10:54.559 --> 0:10:58.080 subscriber loss in a decade, Disney cutting back on costs. 0:10:58.280 --> 0:11:01.520 Do you see Amazon strategy as fundamentally different from Netflix 0:11:01.520 --> 0:11:03.760 and Disney? And if so, how well, you know, we're 0:11:03.840 --> 0:11:07.800 very bullish on it. And remember we all the all 0:11:07.920 --> 0:11:10.560 the models are a little bit different. But for Prime Video, 0:11:11.120 --> 0:11:15.080 we have twounior million plus Prime subscribers, who are you know, 0:11:15.320 --> 0:11:18.320 get that entertainment for free by being part of Prime 0:11:18.400 --> 0:11:22.120 and so we have a little bit different pricing model 0:11:22.160 --> 0:11:25.679 than some of the others. But I'm incredibly encouraged by 0:11:25.679 --> 0:11:27.360 what we have coming. If you if you look at me. 0:11:27.640 --> 0:11:29.760 We launched this show Reacher earlier in the year. It 0:11:29.800 --> 0:11:31.800 was a huge hit. We you know, we have a 0:11:31.840 --> 0:11:35.839 new Masal season. We we just launched the New Boys season, 0:11:35.880 --> 0:11:40.679 which is a I am a big it's very good. 0:11:41.120 --> 0:11:43.000 Of course, we have glad of the Rings coming up, 0:11:43.080 --> 0:11:45.840 you know in September and Thursday and football, so I'm 0:11:45.960 --> 0:11:49.440 very bullish about it. Um. We also, you know, we're 0:11:49.440 --> 0:11:52.760 excited about what we've done with MGM uh. You know, 0:11:52.760 --> 0:11:54.640 I think some of the assets there will go very 0:11:54.679 --> 0:11:56.920 well with the rest of what we're doing entertainment wise. 0:11:57.080 --> 0:12:00.000 So if you look at Warner Brothers, Discovery and Paramountains, 0:12:00.040 --> 0:12:04.000 Stars and Global, they're building really significant subscription businesses. So 0:12:04.400 --> 0:12:08.120 I'm very bullish about that business. I'm I'm optimistic that 0:12:08.200 --> 0:12:10.800 we have a chance to build a significant grocery business, 0:12:10.880 --> 0:12:14.280 which is you know, early stages for us. I am 0:12:14.320 --> 0:12:18.480 excited about uh Kuyper, which is our low earth orbit 0:12:18.559 --> 0:12:21.880 satellite that we're building. You gotta remember there three hundred 0:12:21.960 --> 0:12:24.440 to four hundred million people in the world who have 0:12:24.559 --> 0:12:27.440 limited to no Internet connectivity. I mean, just think about 0:12:27.480 --> 0:12:29.760 how different the world is when you don't have that 0:12:29.800 --> 0:12:32.160 type of connectivity. And so I think that's a really 0:12:32.200 --> 0:12:36.000 significant opportunity that has some aws characteristics to it. I 0:12:36.040 --> 0:12:39.880 continue to be very optimistic about Alexa, you know, building 0:12:39.880 --> 0:12:42.959 the world's best personal assistant. We have a you know, 0:12:43.080 --> 0:12:46.760 two hundred million endpoints already that are using Alexa. Were 0:12:46.760 --> 0:12:49.079 clearly onto something there. And and then you know, our 0:12:49.120 --> 0:12:53.280 autonomous driving ride hailing service and zoos that were building, 0:12:53.280 --> 0:12:55.439 you know, here in the Bay Area. I just think 0:12:55.480 --> 0:12:58.280 with the way auto consumption is evolving, I think that 0:12:58.400 --> 0:13:00.800 also is a chance to be really signific in the business. Now. 0:13:00.840 --> 0:13:03.080 I don't know if I don't know if all of 0:13:03.080 --> 0:13:05.720 them are going to be successful, but if any one 0:13:05.760 --> 0:13:08.160 of them becomes the fourth pillar for us on top 0:13:08.200 --> 0:13:11.520 of Marketplace and Prime in AWS were completely different companies, 0:13:11.520 --> 0:13:14.840 just like we were when AWS became successful. So I 0:13:14.840 --> 0:13:17.760 think they're very worthwhile investments and bets, and I'm optimistic 0:13:17.760 --> 0:13:22.080 about We didn't mention astro obviously though, powered, but I 0:13:22.120 --> 0:13:24.320 mean our home robot is going to be where I 0:13:24.360 --> 0:13:27.360 don't yet where is it? It's not really widely available 0:13:27.360 --> 0:13:32.920 for sale. What's the status? Okay? Um, thank you. Everyone's 0:13:33.040 --> 0:13:36.400 very curious about Jeff's role these days. What kind of 0:13:36.440 --> 0:13:39.400 executive chair he really is. He said when he left 0:13:39.400 --> 0:13:43.080 that he'd focus his attention and energies on initiatives that 0:13:43.160 --> 0:13:45.640 he really cares about as at Amazon. But from the outside, 0:13:45.679 --> 0:13:48.560 it looks like he's really focusing on philanthropy, he's focusing 0:13:48.559 --> 0:13:52.520 on space. What kind of an executive chairman is he? Well? 0:13:52.600 --> 0:13:55.000 He you know, Jeff is always going to be um 0:13:55.080 --> 0:13:58.840 involved and um he has. You know, I'm I feel 0:13:59.000 --> 0:14:01.520 very lucky to have been Amazon for twenty five years. 0:14:02.080 --> 0:14:04.520 I feel very lucky to have worked directly for Jeff 0:14:04.720 --> 0:14:07.400 for twenty of them. And we have a really close 0:14:07.520 --> 0:14:09.679 relationship and half for a long time, and I think 0:14:09.760 --> 0:14:12.880 we share a lot of the same values about customers 0:14:12.920 --> 0:14:16.600 and um, how important is to optimize for customers and 0:14:16.840 --> 0:14:19.440 how high standards they need to be. Um, you know, 0:14:19.720 --> 0:14:21.840 given how easy it is for people to switch, and 0:14:22.360 --> 0:14:25.320 the importance of invention and speed and so, you know, 0:14:25.480 --> 0:14:27.320 I just feel very lucky to have had the chance 0:14:27.320 --> 0:14:30.080 to work so closely with him. So is your relation 0:14:30.120 --> 0:14:32.960 I mean, he was your only boss for twenty five years, right, 0:14:33.120 --> 0:14:37.440 is your relationship fundamentally different than it was when you 0:14:37.480 --> 0:14:39.920 were the head of of course, you know, every every 0:14:39.920 --> 0:14:43.640 single job you have, the relationships different. You know. Remember 0:14:44.000 --> 0:14:46.280 the first couple of years I worked for Jeff, I 0:14:46.280 --> 0:14:48.080 worked is what we call the shadow then, which is 0:14:48.160 --> 0:14:50.920 really like a chief of staff. And that was different 0:14:50.920 --> 0:14:54.000 than when I was starting AWS, which was different from 0:14:54.000 --> 0:14:56.000 when we got AWS going, and it was you know, 0:14:56.040 --> 0:14:58.240 a business that was starting to do well. And and 0:14:58.320 --> 0:15:01.000 it's different when I'm in the CEO role. But you know, 0:15:01.040 --> 0:15:03.000 the constant has always been that we have a great 0:15:03.040 --> 0:15:06.600 relationship and we collaborate really well. Amazon is poised to 0:15:06.640 --> 0:15:10.920 become the biggest private sector employer in the world, second 0:15:10.960 --> 0:15:15.240 only right now Walmart is in that spot, but Amazon 0:15:15.600 --> 0:15:19.560 will probably soon surpass it. First vote to unionize at 0:15:19.560 --> 0:15:21.760 an Amazon warehouse, I know you've been spending a lot 0:15:21.800 --> 0:15:24.560 of time at warehouses. When you look at someone like 0:15:24.640 --> 0:15:26.920 Chris Small's who I think some people look at as 0:15:26.920 --> 0:15:29.680 this modern day hero who got fired pulled off this 0:15:29.800 --> 0:15:33.240 union vote, what's your message to someone like him, Your 0:15:33.320 --> 0:15:35.880 message to the folks who think maybe we should join 0:15:35.920 --> 0:15:39.360 a union, Well, I know, I think that the first 0:15:39.400 --> 0:15:42.040 thing to be clear about is that employees get to 0:15:42.120 --> 0:15:44.000 make that choice whether they want to have a union 0:15:44.120 --> 0:15:45.960 or not. They always have had that choice and it 0:15:46.000 --> 0:15:48.960 continues to be their choice. And you know, we happen 0:15:49.000 --> 0:15:50.960 to think they're better off without a union for a 0:15:51.040 --> 0:15:55.280 number of reasons, including the fact that you know it's 0:15:55.360 --> 0:15:58.320 it's much harder when you have a union to have 0:15:58.400 --> 0:16:01.400 a direct relationship with your man manager and to get 0:16:01.440 --> 0:16:03.600 things done quickly. So if you see something on the 0:16:03.640 --> 0:16:05.600 line that you think could be better for your your 0:16:05.640 --> 0:16:09.320 team or you or your or customers. You can't just 0:16:09.400 --> 0:16:11.320 go to your manager and say let's change this. You know, 0:16:11.360 --> 0:16:14.240 there's a whole process in bureaucracy that you have to 0:16:14.240 --> 0:16:15.800 go through to be able to do that. You know, 0:16:15.840 --> 0:16:18.360 and and we get you know, when there's a union, 0:16:18.960 --> 0:16:21.280 we're going to get the feedback filtered by what the 0:16:21.400 --> 0:16:24.720 union decides is worth bringing up. And we'd much rather 0:16:24.800 --> 0:16:28.560 hear from every employee whatever is on their mind. And so, 0:16:28.640 --> 0:16:30.640 you know, I think if you want to continue to 0:16:30.680 --> 0:16:33.120 have the structure that we've had for all this time, 0:16:33.640 --> 0:16:36.400 you have to have really competitive benefits. And then I 0:16:36.440 --> 0:16:39.040 think if you look at Amazon's, they're very unusual in 0:16:39.040 --> 0:16:43.480 this space. We champion the fifteen dollar minimum wage several 0:16:43.520 --> 0:16:47.920 years ago. The starting salaries now over eighteen dollars an hour, 0:16:48.040 --> 0:16:51.320 which you know is more than double the federal minimum wage. 0:16:51.720 --> 0:16:54.520 You get full health insurance in four oh one K 0:16:54.920 --> 0:16:57.640 and twenty weeks up to twenty weeks of parental leave. 0:16:57.760 --> 0:17:00.320 And if you want to get a college education haven't 0:17:00.360 --> 0:17:02.160 had one. We have a career choice program that lets 0:17:02.200 --> 0:17:04.919 our Fulfillment Center associates to be able to do so 0:17:05.359 --> 0:17:08.840 that is a very unusual and compelling set of benefits 0:17:08.880 --> 0:17:12.439 and those were all accomplished without a union. So, you know, 0:17:12.520 --> 0:17:14.879 I think that we realize that we you know, we 0:17:14.920 --> 0:17:17.800 have to continue to work on the relationship with our 0:17:18.560 --> 0:17:20.720 our employees, and we need to continue to provide the 0:17:21.080 --> 0:17:23.639 right benefits, and you know, we need to continue to 0:17:23.680 --> 0:17:26.760 work on safety, and that's our intention. The FTC has 0:17:26.800 --> 0:17:31.080 revamped its antitrust inquiry into Amazon and by some accounts, 0:17:31.320 --> 0:17:35.680 is accelerating it. Are you preparing for an antitrust lawsuit 0:17:35.720 --> 0:17:39.000 from the FTC? If you are a large company that's 0:17:39.040 --> 0:17:42.600 growing to a significant extent like we have, you have 0:17:42.720 --> 0:17:45.200 to be prepared to be scrutinized. And we have known 0:17:45.240 --> 0:17:47.639 this for some time, you know, many years, and we 0:17:47.720 --> 0:17:50.320 have tried to run the company with that in mind 0:17:50.400 --> 0:17:53.080 and knowing that if if somebody look that we would 0:17:53.080 --> 0:17:54.919 stand up to that scrutiny. And I you know, I 0:17:54.960 --> 0:17:57.200 think that's what we've tried to do and running the business. 0:17:57.280 --> 0:18:02.760 We can't control what, you know, whether organizations bring different 0:18:02.760 --> 0:18:05.440 suits against us. But I think if you look at 0:18:05.520 --> 0:18:07.439 our business, if you actually look at the fact, if 0:18:07.480 --> 0:18:09.920 you take out of you know, take out of the equation, 0:18:10.000 --> 0:18:12.679 that there there may not be the most objective you know, 0:18:12.880 --> 0:18:15.920 leadership when it comes to Amazon in that organization. If 0:18:15.960 --> 0:18:19.879 you look at the facts, you know, in our retail business, 0:18:20.000 --> 0:18:23.920 we're about one percent of the worldwide retail market segment share, 0:18:24.320 --> 0:18:27.680 and remember is still offline. And if you look in 0:18:27.760 --> 0:18:32.280 our AWS business, we you know about depending on you 0:18:32.320 --> 0:18:36.199 measure at of the worldwide global I T span is 0:18:36.280 --> 0:18:39.439 on premises, you know, and then we have a cloud business, 0:18:39.520 --> 0:18:40.800 and then we have a portion of that. You know, 0:18:40.840 --> 0:18:43.919 we're leading market segment share in the cloud part of this, 0:18:44.040 --> 0:18:46.399 but we operate you know, who we compete with in 0:18:46.440 --> 0:18:49.760 AWS is really on premises UM I T in addition 0:18:49.760 --> 0:18:53.200 to the cloud. So you know, these are relatively small 0:18:53.240 --> 0:18:55.639 percentages of the entire party. And you can kind of 0:18:55.680 --> 0:18:59.160 step through all the businesses and I think simply because 0:18:59.240 --> 0:19:02.600 you've been success us full in a few different businesses 0:19:02.720 --> 0:19:05.600 doesn't somehow mean that you have a natural market power. 0:19:05.960 --> 0:19:07.840 It just means you've been successful in a couple of 0:19:07.840 --> 0:19:10.920 different customer experiences. But we still have a relatively small 0:19:10.920 --> 0:19:13.680 amount of market segment share in those areas. What about 0:19:13.680 --> 0:19:16.639 the sec you're being sued by them over third party 0:19:16.720 --> 0:19:19.240 data and how you've used it do you think in 0:19:19.280 --> 0:19:23.920 the past Amazon main mistakes with letting employees internally see 0:19:24.280 --> 0:19:27.199 how those third party selling sellers were doing. We have 0:19:27.320 --> 0:19:29.639 we have pretty good control. I mean, you know, we 0:19:29.720 --> 0:19:33.840 of course disagree with the premise of that, but I 0:19:33.880 --> 0:19:37.560 would say that we have, um, very good controls with 0:19:37.600 --> 0:19:40.760 respect to the data that the different employees sets are 0:19:40.800 --> 0:19:43.959 able to see. And by the way, I think that 0:19:44.000 --> 0:19:48.399 we can be better for sellers, you know, I think that, um, 0:19:48.440 --> 0:19:50.480 you know, we can have better tools from to get started, 0:19:50.520 --> 0:19:52.440 we can have better tools from the manage what they're 0:19:52.480 --> 0:19:57.040 doing across their their different Amazon units. I think we 0:19:57.040 --> 0:19:59.040 can communicate better. There's a whole bunch of things we 0:19:59.080 --> 0:20:02.959 can do better. Um. And we agonize over every single 0:20:03.160 --> 0:20:05.639 email or communication we get from sellers, and we do 0:20:05.760 --> 0:20:10.040 very regularly robust surveying. And a lot more sellers are 0:20:10.080 --> 0:20:13.440 happy with Amazon than unhappy with Amazon. And I think 0:20:13.480 --> 0:20:17.479 if you look at what what they're able to do is, 0:20:17.560 --> 0:20:20.480 you know, as a business, by virtual selling on Amazon 0:20:20.640 --> 0:20:24.720 versus not, it completely changes what's possible. Sellers don't really 0:20:25.240 --> 0:20:29.679 long for e commerce software that exists in lots of places, 0:20:30.200 --> 0:20:33.160 and uh, and it's not very expensive. What they love 0:20:33.160 --> 0:20:36.359 about selling on Amazon is that they get access to 0:20:36.359 --> 0:20:39.879 our hundreds of millions of customers and that completely changes 0:20:39.920 --> 0:20:42.000 what their prospects can be in terms of the businesses 0:20:42.040 --> 0:20:44.320 they're building. So we have a lot of work to 0:20:44.359 --> 0:20:46.240