Amazon Will Lay Off Hundreds of Employees in Health Service Lines. United States (US) e-commerce giant Amazon.com plans to lay off hundreds of employees across its health services subsidiaries.
This layoff plan was revealed by Amazon Healthcare Services Executive Neil Lindsay in an e-mail to his employees on Tuesday (6/2/2024). Previously, Business Insider reported that around 115 employees at One Medical and Amazon Pharmacy would be affected by this layoff plan.
A source estimates that 400 employees will be affected by these layoffs. The layoffs come amid Amazon’s efforts to significantly reduce One Medical’s operating losses and ask the healthcare company to save US$100 million this year.
Amazon Will Lay Off Hundreds of Employees. One Medical seeks to cut its fixed operational costs from 41% to 20% of total revenue by 2028. The company also plans to reduce the cost of a visit per patient to US$322 in 2024, from US$372 in 2023.
Amazon acquired One Medical in July 2022 for approximately US$3.9 billion, including the company’s net debt. Amazon kicked off 2024 with a series of layoffs across its subsidiaries, including Buy with Prime, audiobook and podcast division Audible, and streaming unit Twitch.