The Seattle-based company has lost four of its top executives, representing 40 years of combined service. So far, only one has been replaced.

All of the changes have happened quietly, without any announcements from the company — and stranger yet, most of the departed continue to be listed on the company’s leadership page.

But the departures are easily trackable after reading the company’s annual report filed last week with the Securities and Exchange Commission. When compared with the same filing a year earlier, it’s clear that Amazon’s top ranks are dwindling.

In 2011, the executive team had a dozen members. Now it has nine. The departures appear, though, to be part of a normal turnover process, rather than any meaningful restructuring.

Still, it’s hard to comprehend that Amazon’s management team has gotten smaller during the past year while the company’s overall headcount swelled to 88,400 in 2012 from 56,200 in 2011. Additionally, the e-commerce giant has entered several new businesses over the past decade.

The four executives who are gone are: Michelle Wilson, Amazon’s general counsel; Steven Kessel, SVP of Worldwide Digital Media; Marc Onetto, SVP of Worldwide Operations; and Sebastian J. Gunningham, SVP of Seller Services.

Two of the departures are easier to explain than the others.

For example, Wilson, who had been the company’s general counsel since 1999, stepped down in September to take parental leave. Her departure was documented by GeekWire in August, and Ty Rogers, a company spokesman, confirmed that she was replaced by David Zapolsky, who now holds three titles: VP, general counsel and secretary.

Another executive who can easily be accounted for is Kessel, who oversaw the company’s digital strategy, including books, music, video and the all-important Kindle. He has been on sabbatical now for about a year, as we reported last April.

“Steve continues to enjoy his well-deserved sabbatical, and we look forward to him returning later this year,” Rogers said.

Rogers also explained the departure of Onetto, though very briefly, saying that he had decided to retire after seven years on the job. Rogers declined to specify Onetto’s departure date, but according to the company’s annual report, he is no longer a top executive.

The biggest mystery of the four is the disappearance of Gunningham from the executive officer list (mostly because Rogers would offer only vague comments related to his standing at the company). Gunningham had served as the company’s SVP of Seller Services for five years. Update: Gunningham continues to hold the same title at Amazon, but is no longer a Section 16 officer, according to the company.

As I previously reported, I called what I believe to be Gunningham’s home number twice to clarify, but no one answered and his voicemail was full (Note to Gunningham: clean out your inbox!).

And, in response to multiple inquiries, Rogers repeated one answer: “As you may know, the 10-K only lists Section 16 officers.”

To explain, a Section 16 officer is essentially legal jargon for a member of the company’s executive team, so essentially Rogers is saying that Gunningham is simply that — no longer on the executive team.

Amazon, like other publicly held companies, is not required to disclose the departure of all executive team members, only the CEO, president, CFO, chief accounting officer and COO (although there are some exceptions). Therefore, the one way to notice if an executive has left is by checking the annual report year after year. In this case, that’s especially true since Amazon generally has no C-level execs. Rather, all of its officers hold the title of SVP.

Despite the departures, the Amazon team still has a bench of nine executives (including Wilson’s replacement), so it’s not like the company is running without an engine. And, of course, at the top of the pyramid continues to be founder and Chairman and CEO, Jeff Bezos.

But that will change after the first of the new year, Williams said, when the lightweight publishing site becomes more widely available to the public.

Williams, who now runs Obvious Corporation with Stone, took a few minutes to chat last night after an event in New York City, where he sat on a panel with BuzzFeed founder Jonah Peretti and Josh Miller, the founder of another Obvious-backed company called Branch.

The trio touched upon varying aspects of the future of digital content production and distribution, topics that would probably be boring to normal folk but enthralled the who’s-who of New York’s tech and digital media scene.

A few key points: Williams would like to keep Medium relatively high-quality, though he recognizes that, in publishing, low barriers to entry feed the content machine by making people feel good, thus spurring them to share more content (Instagram, Williams noted, is a key example of this). Also, he believes more and more media consumption will come via networks and platforms instead of individual websites.

“If you’re a Web publisher, you’re primarily paying attention to page views,” he said. “But whether people are actually reading your stuff, whether they’re on the page for five seconds or five minutes, is something we’re looking to measure.”

Williams also said that he believes valuable content can come “from anyone” — though, at the moment, not just anyone can fully access the site.

Williams later said that Medium — aptly described by my AllThingsD colleague Liz Gannes, following its launch last month, as a “collaborative publishing platform” — would open to the public sometime next year, and that despite its singularly-focused branding, would be open to media beyond blogs and texts, including videos and photos.

Medium will use basic Web algorithms that push popular stories up the content pile, Williams said, much in the way Google works. So highest-rated posts will appear at the top of the Web page, while the rest tile down.

“So much of Twitter’s value comes from real time,” Williams said during the panel. “I just think there’s room for other things.”

As SVP of Worldwide Digital Media, Kessel oversees the company’s digital strategy, including books, music, video and the Kindle.

“After incredible success leading the Kindle team over the last several years, Steve Kessel decided to take a well-deserved and long-planned-for sabbatical,” said Amazon spokesman Drew Herdener.

Herdener declined to say when Kessel would return, but said that, in the meantime, Dave Limp, who runs the Kindle device business, and Russ Grandinetti, who runs Kindle content, were overseeing the digital business.

Kessel’s absence follows the launch of the Kindle Fire tablet late last year, and comes at a time when Amazon is aggressively pushing into digital content. Just today, founder and CEO Jeff Bezos sent a letter to shareholders, emphasizing how the Kindle is disrupting the book publishing industry.

Some sources I talked to believed that Kessel, 46, was unlikely to return to Amazon and were characterizing his departure as early retirement. Another source pointed to internal documents, which listed Kessel as overseeing Donald Katz, the CEO of Audible, the company’s audiobooks group. However, Amazon’s investor page continues to list Kessel as the SVP of Worldwide digital media, and Herdener said Kessel is not retiring and is not in charge of Audible.

As one of 10 executives who report directly to Bezos, Kessel has worked closely with the visionary founder since 1999. Initially, he served as the VP of U.S. Books, Music, Video and DVD, and then was the VP of digital before landing in his current role.

According to a BusinessWeek article, it was Kessel who conspired with Bezos in 2004 to explore the radical idea of the online retailer making their own hardware.

Over the years, Kessel has been quoted occasionally in press releases, providing updates on how well the Kindle is selling. In October 2010, he said: “It’s still October and we’ve already sold more Kindle devices since launch than we did during the entire fourth quarter of last year—astonishing because the fourth quarter is the busiest time of year on Amazon.”

Amazon has never released specific sales numbers about the Kindle — a secret that has largely stayed under wraps, likely due to the company’s small management team.

Kessel received his bachelor’s degree in Computer Science from Dartmouth College, and an MBA from Stanford’s Graduate School of Business.

According to a regulatory filing, J.P. Morgan’s asset management unit raised $1.22 billion for a fund called J.P. Morgan Digital Growth Fund LP. That’s about double the amount reported last week by The Wall Street Journal, which, citing anonymous sources, stated the firm planned to raise between $500 million and $750 million for a digital-media fund to invest in Internet and digital-media companies.

Darin Oduyoye, a spokesman for J.P. Morgan’s asset management unit, declined to comment. A man who answered a phone call at the number listed on the filing said we had the wrong number, and a second call went into his voicemail.

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The planned investment fund, run from the New York company’s asset-management unit, is expected to raise between $500 million and $750 million, these people said. Marketing materials were sent to prospective investors starting about two weeks ago.

It isn’t clear whether J.P. Morgan plans to invest directly in target companies or buy and sell shares on behalf of clients. But the investment fund will target “late-stage” private companies, or those with an up-and-running business model, steady revenue and cash flow, according to people familiar with the situation. A J.P. Morgan spokesman declined to comment.

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Now the company has announced the winners of the inaugural PepsiCo10, an incubator program that matches technology, media and communications entrepreneurs with PepsiCo brands for pilot programs set to launch in the coming months. PepsiCo is working with the companies to tailor its marketing message to their technologies.

PepsiCo partnered with venture capital firm Highland Capital Partners to pick the companies from among 500 applicants.

“This could be a company-maker if you’re a young company,” Highland Senior Vice President Michael Gaiss said.

Gaiss said Highland has already met with several of the companies selected. No investments have been made, but conversations are ongoing, he said.

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The firm, founded by private-equity investor Alan Patricof in 2006 to invest in digital media startups, has raised a new $130.7 million fund following a $75 million fund in 2006. Rounding up the cash for the new fund wasn’t an easy process, however.

Ian Sigalow, a partner at Greycroft, says the firm started raising money more than a year ago in March 2009. In total, the firm had 160 first meetings with potential investors and dealt with many months where no investors committed, he says. “The first quarter of 2009 was miserable,” Mr. Sigalow says, recalling the deep-freeze that followed the stock market meltdown in late 2008. “It was cold. (Some investors) were saying why would we invest in a new fund?”

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But much as concertgoers might loathe the idea of giving Live Nation (LYV) even more of their money, they may soon do so. Because beginning today, the company is offering exclusive audio and video recordings of some of its events through Apple (AAPL) iTunes. Prices start at $7.99, which seems astonishingly reasonable for live recordings of this quality. More so when you factor in Live Nation’s involvement.

Not an original idea, by any means; Metallica, Primus, The Pixies, Phish and others have been peddling soundboard recordings of their shows through their official sites for years now. But this is the first time, I think, that we’re seeing the live side of the music business really leverage iTunes and its massive installed base.

And, let’s face it, this is a great idea, indeed. I saw two live shows in the past few months and happily paid $10 and $14 for soundboard recordings of each. But I had to spend some time seeking them out, creating a new customer profile, etc. It would have been much nicer to just fire up iTunes and buy them both with one click.

“There are lots of great cities out there,” he said at a press conference at the local headquarters of IAC (IACI). “We’ve got to make sure people understand there’s a reason to grow, locate, stay in New York City.”

Among the proposed projects are NYC Media Lab, a facility that will coordinate research being done by universities and businesses, and Jumpstart New Media, a training program that places mid-level traditional-media workers into new-media companies for 10-week internships.

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“It was clear that internationally, just as in the US, MySpace’s staffing had become too big and cumbersome to be sustainable in current market conditions,” said MySpace CEO Owen Van Natta. “Today’s proposed changes are designed to transform and refine our international growth strategy.” Operations in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden and Spain are “under review,” he added, and face possible closure.

The cuts follow a 30 percent reduction in headcount in the states last week and the hastening erosion of MySpace’s position in the social-networking market. MySpace lost the title of world’s most popular social network to rival Facebook last year and was overtaken by it in the U.S. last month as well.

Apple is aware that some third-parties claim that their digital media players are able to sync with Apple software. However, Apple does not provide support for, or test for compatibility with, non-Apple digital media players and, because software changes over time, newer versions of Apple’s iTunes software may no longer provide syncing functionality with non-Apple digital media players.

Translation: The Pre won’t be syncing with iTunes for long.

Now, Palm isn’t explicitly named in the advisory, but it’s clear that this is a broad shot across its bow. And it’s not like we didn’t see it coming. Did anyone really think that Apple (AAPL) would permit the Pre to sync with iTunes by masquerading as an iPod?

Funny. Asked last month at D7 if Apple might take issue with the Pre’s iTunes integration, Palm investor Roger McNamee said, “I don’t think so. They are practically a monopolist and this is what consumers want. Consumers own all this media. I find it hard to believe that Apple will get bent out of shape.” (see video below)

Well, believe it. That said, Palm (PALM) seems unfazed by Apple’s implied threat. Reached for comment, the company said Cupertino will only harm consumers if it disables iTunes integration with the Pre. “Palm’s media sync works with the current version of iTunes,” Palm spokesperson Lynn Fox told me. “If Apple chooses to disable media sync in a future version of iTunes, it will be a direct blow to their users who will be deprived of a seamless synchronization experience. However, people will have options. They can stay with the iTunes version that works to sync their music on their Pre, they can transfer the music via USB, and there are other third-party applications we could consider.”

]]> http://allthingsd.com/20090616/unsupported-third-party-digital-media-players-hmm-wonder-who-that-could-be/feed/ 1 http://allthingsd.com/20090616/myspace-a-place-for-layoffs/ http://allthingsd.com/20090616/myspace-a-place-for-layoffs/#comments Tue, 16 Jun 2009 18:15:14 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=19595 The ax has finally swung at MySpace. This morning the AOL of social networks announced plans to sack 30 percent of its workforce. All told, 420 workers will lose their jobs, reducing the size of the company’s staff to 1,000 employees.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” CEO Owen Van Natta said in a statement. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product.”

“MySpace grew too big considering the realities of today’s marketplace,” said Jon Miller, News Corporation’s (NWS) CEO of Digital Media. “I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward.”

The news follows a report by market research outfit comScore (SCOR), indicating that Facebook has surpassed MySpace in the U.S. market as the top social-networking site.

Below, CEO Owen Van Natta’s all-hands memo breaking the ugly news.

Everyone,

Today we are making a number of changes to MySpace’s domestic organizational structure. For the long-term health of the company we are making some very tough, but unfortunately very necessary decisions.

We are reducing our workforce from 1,420 employees to 1,000 – all divisions within the company are affected by this restructure.

These decisions are difficult for everyone, but especially for our friends and colleagues who contributed to MySpace’s success and are directly affected by the changes. Through no fault of theirs our company’s size became unsustainable. The future success of MySpace is dependent upon us operating as a nimble and entrepreneurial company with the adaptive mentality of a start-up.

I believe this is the first difficult step toward a major turnaround – a step that will not only shore us up in the short term, but position us for long term success. We need to become a more innovative company. Becoming more innovative is an ongoing responsibility for all of us, not a one-time effort. We are developing a process that will empower anyone in the company to contribute ideas and enable us to integrate your thoughts into our plans for the future. We will follow-up with details on this process in the coming weeks.

This week we will communicate the foundation for our company strategy. In the days ahead, I will visit a number of U.S. offices, starting tomorrow at HQ, MySpace Music, and El Segundo. On Thursday I look forward to seeing everyone in Seattle and San Francisco, and on Friday, I’ll be spending time with the team based in New York.

I’m honored to be working with you on the next phase of MySpace and I’m grateful for your patience during this difficult process.

Thank you,
Owen

]]> http://allthingsd.com/20090616/myspace-a-place-for-layoffs/feed/ 0 http://allthingsd.com/20081023/sun-posts-q1-co-founder-loss/ http://allthingsd.com/20081023/sun-posts-q1-co-founder-loss/#comments Thu, 23 Oct 2008 14:53:46 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=7267 Andy Bechtolsheim has given his notice again. The Sun (JAVA) co-founder is leaving the company he helped establish in 1982, just four years after returning to it and reinvigorating its aging product line. His new gig: chairman and chief development officer of Arista Networks, a start-up he funded with Stanford University’s David Cheriton that sells lean, high-performance network switches for data centers to the likes of Lawrence Livermore National Laboratory and digital media streaming company BitGravity. Together with Cisco alum Jayshree Ullal, the two hope to take on Cisco Systems (CSCO) in the data center infrastructure market.

This is the second time Bechtolsheim has left Sun, and in all likelihood his last. On Monday, the company warned of a much larger-than-expected quarterly loss on lower revenue. Sun shares have fallen more than 70 percent this year, and they fell lower still on news of Bechtolsheim’s departure.

Sun, still reeling from the beating it’s been taking on Wall Street, claims it’s not losing Bechtolsheim–just his undivided attention. “Andy will remain with the company as an essential product architect as part of the Sun Systems group; however he will be working with Sun in a reduced capacity as a result of his being named Chief Development Officer of Arista Networks, a start-up company he founded,” Sun said in a statement. “Andy will focus his time with Sun on technology development and ongoing systems projects to help drive new product architectures, including X64 servers and storage servers, and will continue to work on key strategic initiatives such as HPC.”

Just how Bechtolsheim will manage that with a new full-time job as chairman and chief development officer of Arista remains to be seen. Although if anyone can do it, he can.

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