Amazon Confirms Job Cuts at One Medical and Amazon Pharmacy
In a recent announcement, Amazon has confirmed that it is cutting hundreds of jobs across its divisions, One Medical and Amazon Pharmacy. The goal of these cuts is to realign resources in order to meet the divisions’ goals, according to Neil Lindsay, Amazon Health Services SVP. The company has not disclosed the exact number of employees or the specific roles that will be impacted by the cuts.
Affected employees will receive financial support and benefit continuation, as well as the opportunity to apply for new roles within Amazon. It’s important to note that Amazon is not implementing a hiring freeze and will continue to hire providers and employees for One Medical and Amazon Pharmacy.
The internal memo regarding the job cuts was sent after Business Insider reported on the planned announcement. In the memo, Lindsay apologized to employees for not being able to communicate the news directly to them before it was reported externally.
Despite the job cuts, Amazon remains optimistic about the future of its pharmacy and One Medical offerings. CEO Andy Jassy recently expressed enthusiasm for the growth of Amazon Pharmacy during the company’s fourth-quarter earnings call. He also highlighted the success of the discounted One Medical memberships for Prime users.
Amazon completed its acquisition of primary care chain One Medical in February for $3.9 billion. Additionally, the company announced discounted One Medical memberships for Prime users in November. Amazon’s pharmacy business has also made efforts to expand, such as offering generic drug subscriptions for Prime members and manufacturer coupons for select brand name medications.
This is not the first time Amazon has implemented job cuts. In early 2023, the company announced over 27,000 role eliminations company-wide. Later that year, Amazon Pharmacy laid off 80 employees, and several healthcare roles were dissolved when Amazon Care, the company’s hybrid care offering, shut down.