Jeff Bezos has announced plans to resign from Amazon this year.

The chief executive and founder has said that he will be stepping down and instead will take on the roll of executive chair.

The news came as the group released its latest financial results. In the final three months of the year, the group reported record sales of over $100bn for the first time. Results were ahead of forecasts and the company recorded an increase of net profits from $3.3bn to $7.2bn in the fourth quarter.

Andy Jassy, chief executive of Amazon Web Services, will replace Bezos. The company provides cloud computing and storage for governments and big companies and has become one of Amazon’s most important businesses. It accounts for 52% of the company’s profits.

“Amazon is what it is because of invention. If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention,” said Bezos.

“Right now, I see Amazon at its most inventive ever, making it an optimal time for this transition.”

Tim Hubbard is the assistant professor of management at the University of Notre Dame’s Mendoza College of Business. He said: “Andy Jassy stepping into the CEO role at Amazon is a natural fit. Amazon Web Services is a powerhouse within the company, driving a lot of profitability.

“This transition may free up Bezos to focus on other ideas that he’s been accumulating over the years. In one way, I think it might be freeing for him to have the space to personally innovate again, without having to manage the rest of the company.”

“Given the recent successes at Amazon, especially during the pandemic, it’s going to be hard to disrupt their momentum,” he added.