Amazon is making some changes at its One Medical and Pharmacy units, with hundreds of jobs on the chopping block as part of a cost-cutting initiative. The layoffs are expected to save One Medical $100 million and are part of a broader campaign to streamline operations.
According to a spokesperson from Amazon, the layoffs will impact a few hundred roles, with estimates ranging from 115 positions to up to 400 employees. The company had initially planned to announce the layoffs earlier but delayed the announcement due to internal issues and recent earnings reports.
The cost-cutting measures are aimed at reducing One Medical’s fixed cost structure, with Amazon leadership pushing for significant decreases in operating losses. The goal is to save an additional $100 million this year, building on the company’s previous operating loss of $420 million in 2022.
Amazon has been implementing job cuts across various units, including Twitch, Prime Video, Audible, and Amazon Pay. CFO Brian Olsavsky’s recent comments have also raised concerns about more potential layoffs at Amazon.
In response to the layoffs, Neil Lindsay, Amazon Health Services Senior Vice President, expressed gratitude for the affected team members’ contributions and emphasized the company’s commitment to providing high-quality healthcare services.
Since Amazon’s acquisition of One Medical in 2023, tensions have reportedly grown between the two companies’ leadership teams. Some executives are expected to depart as part of the restructuring, with changes to compensation plans causing internal friction.
Despite the challenges, One Medical is projecting significant cost reductions and productivity gains through the integration of resources and new technologies. The company aims to reduce fixed operating costs and patient visit costs while increasing efficiency and expanding services.
Overall, the changes at One Medical reflect Amazon’s efforts to streamline operations and deliver a better healthcare experience for its customers.