Corporate office space is the latest expense on the chopping block at Amazon's One Medical, which announced layoffs earlier this week.
One Medical will close offices in New York City, Minneapolis and St. Petersburg, Florida, by the end of the month, according to a Thursday report from Business Insider which cited a leaked internal email from One Medical’s CEO Trent Green. The primary care provider is also downsizing its San Francisco office to one floor, the report said.
One Medical will focus on a regional operating model, expanding its core regions to seven from four and creating a general manager role to lead operations, according to the report.
"Many One Medical corporate employees currently work remotely, so we are reducing our investment in corporate office space to reinvest in the patient experience," said an Amazon spokesperson in a statement to Modern Healthcare, confirming the closures.
The spokesperson declined to specify the locations of affected offices and when they will close.
One Medical, which Amazon acquired in a $3.9 billion deal in early 2023, also is moving Chief Financial Officer Bjorn Thaler to a new role focused on "strategic growth initiatives," the spokesperson said. Thaler will report to Vice President of Health Services Neil Lindsay.
News of the changes comes just a few days after Amazon said it would cut a few hundred jobs in its One Medical and pharmacy divisions, adding to multiple rounds of layoffs that began more than a year ago. Amazon did not share specifics on which jobs were affected.
Amazon's recent healthcare cuts have raised some eyebrows about the company's strategy.
Healthcare is a big investment for Amazon. The company acquired online pharmacy service PillPack in 2018 and launched Amazon Pharmacy in 2020. It launched virtual health platform Amazon Clinic in 2022 and later expanded those services nationwide. In early 2023, Amazon unveiled generic drug subscription service RxPass.