MONEY & BUSINESS: Amazon to cut hundreds of jobs across its healthcare units
Amazon will cut a few hundred jobs across its healthcare units, Amazon Healthcare Services executive Neil Lindsay said in a letter to employees on Tuesday.
Roughly 115 positions may be eliminated at One Medical and Amazon Pharmacy, according to Business Insider, which first reported, opens new tab the job cuts. A person cited by Insider estimated up to 400 employees could lose their jobs.
Amazon’s leadership wants One Medical to significantly decrease its operating losses and asked the healthcare company to save an additional $100 million this year, according to the report.
One Medical aims to cut its fixed operating costs from 41% to 20% of total revenue by 2028, the report said, adding that the company also plans to reduce the cost of each patient’s visit to $322 in 2024, from $372 in 2023.
“We’re realigning some resources to help accelerate our efforts,” Lindsay said.
Amazon had agreed to acquire One Medical in July 2022, in a deal valued at about $3.9 billion, including net debt.
The company has kicked off 2024 with a string of job cuts across multiple units, including Buy with Prime, audio book and podcast division Audible and streaming unit Twitch, according to multiple media reports.
“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.