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Amazon CEO Jeff Bezos will step down later this year, turning the helm over to the company’s top cloud executive Andy Jassy, the company announced Tuesday. Bezos will transition to executive chairman of Amazon’s board.

Bezos founded Amazon in 1994 and has since morphed the one-time online bookstore into a mega retailer with global reach in a slew of different categories from gadgets to grocery to streaming. Amazon surpassed a $1 trillion market cap under Bezos’ leadership in January of last year — it’s now worth more than $1.6 trillion.

The company had kept its succession plans quiet, though onlookers speculated that either Jassy or Jeff Wilke, the CEO of Amazon’s worldwide consumer business, would be his successor. But, in August, Amazon announced Wilke will retire in 2021.

Jassy joined Amazon in 1997 and has led Amazon’s Web Services cloud team since its inception. AWS continues to drive much of Amazon’s profit.

“I’m excited to announce that this Q3 I’ll transition to Executive Chair of the Amazon Board and Andy Jassy will become CEO,” Bezos said in a letter to employees. “In the Exec Chair role, I intend to focus my energies and attention on new products and early initiatives. Andy is well known inside the company and has been at Amazon almost as long as I have. He will be an outstanding leader, and he has my full confidence.”

The news came alongside an earnings report in which Amazon posted its first $100 billion quarter. AWS, under Jassy, reported 28% revenue growth for the fourth quarter. About 52% of Amazon’s operating income was attributed to AWS as of October 2020.

Shares of Amazon were up about 1% in extended trading on Tuesday on the back of the earnings report and the C-suite news. The company’s stock has gained about 4% so far in 2021 and is up nearly 70% in the last 12 months.

Amazon chief financial officer Brian Olsavsky said on the company’s earnings call that the executive change was decided in consultation with Amazon’s board of directors. He said Bezos will remain very involved and have his fingerprints on lots of different parts of the company. He said Jassy is a visionary leader who will bring his own skillset but that Amazon expects a lot of continuity with the transition.

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