Amazon will reportedly cut jobs across its healthcare units One Medical and Amazon Pharmacy.
The company will cut “a few hundred” jobs in these businesses, Reuters reported Tuesday (Feb. 6), citing a letter to employees from Neil Lindsay, senior vice president of Amazon Health Services.
The number of positions to be cut could range from roughly 115 to as many as 400, the report said, citing a paywalled article by Business Insider.
That article also said that Amazon leaders want One Medical to save another $100 million this year while decreasing its operating losses, per the report.
Lindsay said in the letter to employees, per the report, “We will continue hiring providers and investing in teams and technology that will help us provide high-quality and accessible care to more people.”
Amazon announced its plans to acquire One Medical for about $3.9 billion in July 2022, saying the tech-powered primary care provider would expand Amazon’s healthcare offerings.
One Medical’s lineup of in-person, digital and virtual care services provides an alternative to traditional ways of booking an appointment, getting to a clinic, having a hurried visit with a doctor and then going to a pharmacy, Lindsay said when announcing the acquisition.
“We think healthcare is high on the list of experiences that need reinvention,” Lindsay said at the time.
The cuts in its healthcare units are the latest in a series of layoffs announced by Amazon. In the first weeks of 2024 alone, the company laid off about 30 employees in its Buy with Prime unit, hundreds of staffers across its Prime Video and Amazon MGM Studios division, about 500 workers in its livestreaming service Twitch, and about 5% of the roles in its audiobook and podcast division Audible.
The latest cuts come about a month after Amazon launched a new program called Health Conditions to help individuals discover and enroll in virtual care benefits that are available to them through their employer or health plan at no extra cost.
That launch is happening as Amazon continues what has been described by PYMNTS as a “multiyear journey toward bringing healthcare more fully online.”
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