Amazon is eliminating a "few hundred roles" across One Medical and Amazon Pharmacy, the company confirmed Tuesday.
In a memo to employees shared with Fierce Healthcare, Amazon Health Services Senior Vice President Neil Lindsay said the company identified areas where it can "reposition resources to invest in invention and experiences that have a direct impact on customers and members."
These changes will result in cutting positions in the healthcare division, he wrote.
“We’re seeing very strong momentum and positive customer feedback across our healthcare offerings. As we continue our mission to make healthcare simpler for customers, we’re realigning some resources to help accelerate our efforts to deliver the best experience for our patients, customers, and members," Lindsay said in a statement to Fierce Healthcare.
"Unfortunately, these adjustments will result in the elimination of a few hundred roles within Amazon Pharmacy and One Medical. We’re grateful to these team members for their contributions, and we will support them in their next steps. We will continue hiring providers and investing in teams and technology that will help us provide high-quality and accessible care to more people," Lindsay said.
Roughly 115 positions may be cut at One Medical and Amazon Pharmacy, according to Business Insider, which first reported the job cuts. Insider cited one person who estimated up to 400 employees could lose their jobs.
The online retail giant said employees who are impacted by the layoffs will receive financial support, benefit continuation and career assistance to aid in their transitions as well as the opportunity to apply for new roles in the organization.
Amazon Health planned to inform the impacted employees this week, but an employee leaked the information, Lindsay said in the memo to employees.
Amazon's leadership wants One Medical to reduce its operating losses and tasked the healthcare company with saving an additional $100 million this year, Insider reported, citing people within the company.
In the memo, Lindsay said Amazon has seen "tremendous growth" in its healthcare businesses including Amazon Pharmacy, One Medical and Amazon Clinic.
In 2023, Amazon Pharmacy launched RxPass, automatic coupons and partnerships, he said.
"We expanded Amazon Clinic nationwide, and since launch, the marketplace has seen a 96% customer satisfaction rating. And, One Medical continues to grow its membership, benefiting from increased awareness from Amazon, such as the new Prime member benefit, while also focusing on ways to continually improve the care experience for members across One Medical and One Medical Seniors," Lindsay wrote.
The company started 2024 with a string of job cuts across multiple units, including Buy with Prime, audiobook and podcast division Audible and streaming unit Twitch, according to multiple media reports.
Amazon acquired One Medical in a $3.9 billion deal in July 2022, signaling the online retailer had bold ambitions to expand its reach in healthcare.
The company recently announced it was integrating Amazon Pharmacy with One Medical primary care providers to provide access to medical consultations.