iNDICA NEWS BUREAU–
Amazon has eliminated hundreds of jobs from its healthcare units, including Amazon Pharmacy and One Medical, as part of a broader cost-cutting campaign. The company confirmed the development to CNBC. “As we continue to make it easier for people to get and stay healthy, we have identified areas where we can reposition resources so we can invest in invention and experiences that have a direct impact on our customers and members of all ages,” Neil Lindsay, who leads Amazon Health Services, wrote in a memo to employees.
“Unfortunately, these changes will result in the elimination of a few hundred roles across One Medical and Amazon Pharmacy,” he added.
In the memo, the company also mentioned that it will support those employees who are affected by the latest job cuts with financial support, benefit continuation, and career assistance to aid in their transition, as well as the opportunity to apply for new roles in the organisation.
Last month, Amazon announced its decision to lay off nearly 5 per cent of its workforce at its Buy with Prime unit. Consumer robot maker iRobot announced it is laying off 350 employees — about 31 per cent of its workforce — and its founder and CEO, Colin Angle will also step down. The layoffs came after the Amazon-iRobot $1.7 billion deal was mutually terminated over regulatory hurdles. Shares of iRobot fell 10 per cent after the deal termination news.
In the same month, Amazon-owned audiobook and podcast division Audible announced it was laying-off 5 per cent of its staff, which is more than 100 employees, as part of overall job cuts at the e-commerce giant.
The tech giant also laid off hundreds of employees at Twitch, Prime Video and MGM Studios.
Here is the full memo, as reported by CNBC:
Hi everyone,
The past year has been incredibly exciting for all of our health care businesses, and we’re seeing tremendous growth for Amazon Pharmacy, One Medical, and Amazon Clinic. We reinvented the Amazon Pharmacy experience throughout 2023 to make it more affordable and convenient for customers to get the prescription medications they need through RxPass, automatic coupons, partnerships, and more. We expanded Amazon Clinic nationwide, and since launch, the marketplace has seen a 96% customer satisfaction rating. And, One Medical continues to grow its membership, benefiting from increased awareness from Amazon, such as the new Prime member benefit, while also focusing on ways to continually improve the care experience for members across One Medical and One Medical Seniors. We remain energized to learn from One Medical’s DNA and scale mechanisms like CI-CARE, alongside Amazon’s Leadership Principles.
As we continue to make it easier for people to get and stay healthy, we have identified areas where we can reposition resources so we can invest in invention and experiences that have a direct impact on our customers and members of all ages. Unfortunately, these changes will result in the elimination of a few hundred roles across One Medical and Amazon Pharmacy.
We are aware these role eliminations are difficult for those impacted, as well as those who have worked alongside them. We will support those who are affected with financial support, benefit continuation, and career assistance to aid in their transition, as well as the opportunity to apply for new roles in the organization.
We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted. However, because one of our teammates leaked this information externally, I wanted you to hear the details directly from me. This is not ideal, and I am sorry if you heard about this externally first. We will communicate with impacted employees tomorrow.
Please know that my leadership team and I will provide guidance on the path forward following these changes. I look forward to working with you to continue helping our customers and members alike get and stay healthy.
Neil
