Amazon Consumer CEO, Who Led Massive Logistics Expansion, Resigns

In a statement posted to

Twitter,

the executive said: “I am a builder at heart” and “it is time for me to say goodbye and start a new journey.”

Amazon CEO

Andy Jassy

said Friday in a memo to staff, “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.” He said Amazon intended to be thoughtful in finding a replacement for Mr. Clark.

Amazon’s logistics operations, which Mr. Clark oversaw, were heavily strained during the pandemic, running out of capacity to fulfill the onslaught of orders in the early months. The company doubled the capacity of its fulfillment network since 2020, which helped speed up deliveries to customers. But as the pandemic waned, Amazon was left with too much warehouse space. In April, the company said it expected the excess space to contribute to $10 billion in extra costs in the first half of 2022.

Amazon reported its first quarterly loss in seven years in April and reported a decline in demand that strained its warehouse operations after roughly two years of tremendous growth driven by the pandemic.

The e-commerce giant acknowledged recently that it overbuilt during the pandemic. It is now seeking to sublease at least 10 million square feet of warehouse space and is exploring options to end or renegotiate leases with outside warehouse owners, according to a person familiar with the matter.

Between strains on Amazon’s fulfillment system and Mr. Clark’s move from Seattle to the Dallas area, there had been some signs that the executive was considering a departure. His resignation comes less than a year after Mr. Jassy took over leadership of Amazon from founder and former CEO

Jeff Bezos.

Mr. Clark is known on Amazon’s leadership team for being outspoken with his opinions. His competitive streak has often been on display on his Twitter account. Last year, he tweeted: “I often say we are the Bernie Sanders of employers, but that’s not quite right because we actually deliver a progressive workplace.”

He also regularly teases rivals on Twitter.

In October 2019,

FedEx Corp.

CEO

Fred Smith

called Mr. Clark a smartass in a Wall Street Journal article. “I feel seen,” Mr. Clark responded in a tweet. In a tweet responding to the chief operating officer of Amazon rival

Shopify Inc.,

who had tweeted out a business strategy his company used that appeared to mirror Amazon’s, Mr. Clark posted a single emoji of a person with sunglasses.

The resignation is the latest high-profile departure among Amazon’s senior leadership, dubbed the “S-Team.” Last year, Amazon Web Services executive

Charlie Bell,

who was a close adviser to Mr. Jassy, resigned. Year to date, Amazon’s stock is down more than 28%.

Write to Dana Mattioli at dana.mattioli@wsj.com

In a statement posted to

Twitter,

the executive said: “I am a builder at heart” and “it is time for me to say goodbye and start a new journey.”

Amazon CEO

Andy Jassy

said Friday in a memo to staff, “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.” He said Amazon intended to be thoughtful in finding a replacement for Mr. Clark.

Amazon’s logistics operations, which Mr. Clark oversaw, were heavily strained during the pandemic, running out of capacity to fulfill the onslaught of orders in the early months. The company doubled the capacity of its fulfillment network since 2020, which helped speed up deliveries to customers. But as the pandemic waned, Amazon was left with too much warehouse space. In April, the company said it expected the excess space to contribute to $10 billion in extra costs in the first half of 2022.

Amazon reported its first quarterly loss in seven years in April and reported a decline in demand that strained its warehouse operations after roughly two years of tremendous growth driven by the pandemic.

The e-commerce giant acknowledged recently that it overbuilt during the pandemic. It is now seeking to sublease at least 10 million square feet of warehouse space and is exploring options to end or renegotiate leases with outside warehouse owners, according to a person familiar with the matter.

Between strains on Amazon’s fulfillment system and Mr. Clark’s move from Seattle to the Dallas area, there had been some signs that the executive was considering a departure. His resignation comes less than a year after Mr. Jassy took over leadership of Amazon from founder and former CEO

Jeff Bezos.

Mr. Clark is known on Amazon’s leadership team for being outspoken with his opinions. His competitive streak has often been on display on his Twitter account. Last year, he tweeted: “I often say we are the Bernie Sanders of employers, but that’s not quite right because we actually deliver a progressive workplace.”

He also regularly teases rivals on Twitter.

In October 2019,

FedEx Corp.

CEO

Fred Smith

called Mr. Clark a smartass in a Wall Street Journal article. “I feel seen,” Mr. Clark responded in a tweet. In a tweet responding to the chief operating officer of Amazon rival

Shopify Inc.,

who had tweeted out a business strategy his company used that appeared to mirror Amazon’s, Mr. Clark posted a single emoji of a person with sunglasses.

The resignation is the latest high-profile departure among Amazon’s senior leadership, dubbed the “S-Team.” Last year, Amazon Web Services executive

Charlie Bell,

who was a close adviser to Mr. Jassy, resigned. Year to date, Amazon’s stock is down more than 28%.

Write to Dana Mattioli at dana.mattioli@wsj.com