May 14 (Reuters) - The chief of Amazon.com's ( AMZN )

wildly profitable Amazon Web Services cloud computing unit will

step down next month after a three-year term.

Adam Selipsky, 57, who is also a member of Amazon's ( AMZN ) team

advising CEO Andy Jassy, will leave the company on June 3,

according to an Amazon ( AMZN ) statement Tuesday. He will be replaced by

Matt Garman, a senior vice president who has overseen sales and

marketing at AWS.

Selipsky has spent 14 years at AWS over two stints. He

was the CEO of Tableau Software, a unit of Salesforce ( CRM ),

from 2016 to 2021, when he was tapped to take over the division

from Jassy who had been appointed Amazon ( AMZN ) CEO.

Under Selipsky's leadership, AWS saw rapid growth, doubling

sales of $45.4 billion from the year before his appointment to

$90.8 billion in 2023 and nearly doubling operating income to

$24.6 billion over that period.

Still, AWS has been plagued by criticism that it hasn't been

fast enough to roll out competitive generative artificial

intelligence services to meet the challenge presented by

competitors, including OpenAI. It recently made its Amazon Q

chatbot service broadly available for businesses.

It wasn't immediately clear what Selipsky may do next,

though he said he was leaving the company to "spend more time

with family."

While it has the largest share in the U.S. cloud market,

its dominance is under pressure from Microsoft's fast-growing

Azure service that is benefiting from AI offerings powered by

its tie-up with OpenAI. And Alphabet's Google is

expected to roll out new AI services Tuesday at its annual

developer conference.

AWS, its second-biggest business unit after e-commerce, is

widely regarded as Amazon's ( AMZN ) growth engine, contributing about

40% to the company's top line.

Garman started at Amazon ( AMZN ) as an intern during the summer of

2005 and joined the company full-time the next year as one of

its first product managers.

Selipsky also led AWS through several rounds of layoffs,

including a few hundred jobs in April in the unit overseeing

sales and marketing for physical stores technology. AWS was

among the hardest hit divisions in 2023 when Amazon ( AMZN ) trimmed

around 27,000 jobs.