Amazon Slashes Hundreds of Jobs in One Medical & Pharmacy Verticals in the US

The Amazon head confirmed that the restructuring efforts would result in the termination of several hundred roles across One Medical and Amazon Pharmacy.

Amazon has eliminated hundreds of positions within its Pharmacy and One Medical divisions in the US. The company has cited the ongoing job cut as an initiative to enhance customer experience and foster innovation.

Reportedly, the global major announced the move in a memo addressing the employees.

In the words of Neil Lindsay, head, Amazon Health Services, “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 inventions and experiences that have a direct impact on our customers and members of all ages.”

In the note, the Amazon head acknowledged that the restructuring efforts would result in the termination of several hundred roles across One Medical and Amazon Pharmacy.

What led to the Big Move?

Amazon's workforce reduction comes amid a broader trend of streamlining operations, which has seen the company shed over 27,000 jobs between late 2022 and mid-2023.

Reports suggest CEO Andy Jassy has been actively pursuing cost-cutting measures, particularly targeting newer ventures within the company's portfolio.

Besides, Amazon is also reportedly asking managers to assign lower performance ratings to employees who fail to comply with the Return to Office (RTO) policy. Reports claim that the e-commerce giant has taken a drastic step by blocking promotions for those failing to meet the stringent office attendance criteria.

Employee Reaction to the Rising Momentum

Per an India Today report, some Amazon employees suspect that the company's unusually strict return-to-office policy is part of a larger strategy akin to a "quiet firing" plan.

Further, the narrative suggests that Amazon is intentionally creating challenging conditions for employees, encouraging them to leave voluntarily, ultimately helping the company cut costs without facing the backlash of outright terminations.

The decision to trim positions within its Pharmacy and One Medical divisions follows Amazon's strategic acquisitions aimed at bolstering its presence in the healthcare sector.

Looking back, Amazon acquired One Medical for approximately $3.9 billion in July 2022, marking one of its largest deals to date in the healthcare industry. This move was part of a broader strategy to expand its footprint in healthcare, which also included the acquisition of PillPack in 2018 and the launch of a virtual health clinic service.

Despite the workforce reduction, Lindsay emphasized Amazon's commitment to its healthcare offerings, citing "very strong momentum and positive customer feedback," across its healthcare offerings, and that the company will continue to invest in them.

Amazon’s Healthcare Initiatives

Recently, Amazon Health launched ‘Health Condition Programs’ to address chronic conditions in the US. The program offers digital health benefits to customers for managing chronic conditions such as pre-diabetes, diabetes, and hypertension.

This initiative is part of Amazon Health’s efforts to provide comprehensive, digitally-enabled healthcare services. It is designed to help individuals better manage their health conditions and overall well-being.

In November, Amazon’s One Medical partnered with CommonSpirit Health for enhanced patient care in Seattle. The collaboration enables One Medical members in Seattle to access a wide range of specialties through Virginia Mason Franciscan Health’s extensive network of providers, outpatient facilities, and hospitals, enhancing the overall healthcare experience.

Notably, One Medical's membership, priced at $199 per year, has become more accessible to Amazon Prime members. With a discounted rate of $9 per month or $99 annually, along with additional family memberships at $6 per month, the collaboration aims to make quality healthcare more affordable and convenient.

As Amazon explores ways to leverage One Medical's expertise in patient care with its tech capabilities, including advanced predictive models and digital engagements, the collaboration holds promise for scaling up integrated primary care and improving healthcare outcomes for patients in the Seattle region.