Amazon Healthcare Services executive Neil Lindsay said in a letter to employees Tuesday that Amazon will cut hundreds of jobs across its healthcare division.
The layoffs Opens in a new tab Approximately 115 positions could be cut at One Medical and Amazon Pharmacy, as first reported by Business Insider. Sources cited by Insider estimate that up to 400 employees could lose their jobs.
Amazon executives want to significantly reduce One Medical’s operating losses and have asked the company to save an additional $100 million this year, according to the report.
According to the report, One Medical aims to reduce fixed operating costs from 41% to 20% of total revenue by 2028, and the cost per patient visit will decrease from $372 in 2023 to 2024. It added that the amount will be reduced to $322.
“We are realigning some resources to accelerate our efforts,” Lindsey said.
Amazon had agreed to acquire One Medical in July 2022 in a deal worth about $3.9 billion, including net debt.
According to multiple media reports, the company started 2024 with a series of layoffs across multiple divisions, including Buy with Prime, Audible, its audiobooks and podcasts division, and Twitch, its streaming division.
“We will continue to hire more providers and invest in our teams and technology to bring high-quality, accessible care to more people,” Lindsay said.
