Amazon is cutting "a few hundred roles" across its One Medical and pharmacy divisions, the tech titan said Tuesday.
The company declined to share details about the timeline for the layoffs or which positions will be cut. Amazon plans to talk with those affected on Wednesday, Neil Lindsay, senior vice president at Amazon Health Services, said in a company-wide email sent out after an employee leaked information on the job cuts.
Some of the affected employees may transition into new roles at the company, while others will be offered financial and career assistance support, Lindsay said.
Amazon has conducted mass layoffs across divisions over the last couple of years, including more than 27,000 job cuts in 2023. Lindsay said in the email the latest healthcare layoffs will allow Amazon to "invest in invention and experiences that have a direct impact on our customers and members of all ages."
Healthcare is a big play for Amazon. The company acquired online pharmacy service PillPack for roughly $750 million in 2018 and launched Amazon Pharmacy in 2020. It then launched virtual health platform Amazon Clinic in 2022 and later expanded those services nationwide. In early 2023, Amazon unveiled RxPass, a generic drug subscription service.
Also in 2023, Amazon acquired primary care provider One Medical in a $3.9 billion transaction that garnered pushback from federal regulators.
Amazon's healthcare strategy hasn't always proved a winner, however. The company disbanded Haven, its joint venture with J.P. Morgan Chase and Berkshire Hathaway, in 2021. In 2022, Amazon shut down Amazon Care, a medical care service it sold to employer health plans.