Jeff Bezos announced Tuesday that he will step down later this year as CEO of Amazon, after founding the company 27 years ago. 

A company statement said Andy Gacy, who heads the Amazon Web Services unit dealing with cloud computing, will take over the CEO position by the third term.

The change in administration came with Amazon announcing that it recorded profits of 7.2 billion dollars during the holiday season, in addition to a 44 percent increase in revenues to reach 125.6 billion.

Bezos, thanks to his stake in Amazon, is the richest man in the world.

In the statement, Bezos noted that Amazon has reached "where it is now thanks to innovation," adding, "Currently, I see Amazon at its highest level of innovation ever, which makes it the ideal time for this transition."

Gacy joined Amazon as Marketing Director in 1997, and in 2003 he founded the cloud computing unit for the more profitable but lesser known company of the giant.

Bezos said that he intends to focus on philanthropy, space and media projects after he steps down, adding in a letter to employees that he is still at his peak and that "this is not related to retirement."

"I will remain involved in important initiatives at Amazon, but I will also have the time and energy I need to focus on the Dai One Fund, the Bezos Earth Fund, Blue Origin, the Washington Post and other things that I am passionate about."

Bezos will assume the position of executive chair in the third quarter of the year.