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Amazon cuts hundreds of jobs in health units

By Nithya Bose in Amazon News, posted February 7, 2024

Amazon has cut several hundred positions in its Pharmacy and One Medical segments.

Neil Lindsay, the head of Amazon Health Services, said: “As we continue to make it easier for people to get and stay healthy, we have identified areas where we can reposition resources so we can invest in invention and experiences that have a direct impact on our customers and members of all ages.

“Unfortunately, these changes will result in the elimination of a few hundred roles across One Medical and Amazon Pharmacy.”

The e-commerce giant has trimmed over 27,000 positions from late 2022 through mid-2023.

It comes amid industry-wide cutbacks due to economic pressures such as inflation and increased interest rates.

Amazon has also announced layoffs in several other units, including Prime Video, MGM Studios, Buy with Prime, Twitch, and Audible.

The cuts come under the leadership of CEO Andy Jassy, who has been focusing on reducing expenses in less established business areas.

This included a smaller round of layoffs in the Pharmacy department last July.

Brian Olsavsky, Amazon's CFO, said in a recent call with reporters that the company remains prudent in expanding its workforce, emphasizing efficiency and productivity.

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Amazon's venture into healthcare included the acquisition of One Medical for about $3.9 billion in July 2022.

It marks one of its largest deals to bolster its healthcare footprint.

This follows its purchase of PillPack in 2018, entering the online pharmacy sector, and introducing a virtual health clinic.

Lindsay said Amazon has seen “very strong momentum and positive customer feedback” across its healthcare offerings and will continue to invest in them.

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