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Amazon reportedly to cut hundreds of healthcare jobs

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Amazon is reportedly cutting more than 100 jobs at One Medical and Amazon Pharmacy, according to a letter to employees from Amazon Healthcare Services executive Neil Lindsay.

According to Business Insider, approximately 115 positions within the healthcare division could be eliminated in an attempt to reduce One Medical’s operating losses. Seeking Alpha reported that job cuts could amount to several hundred as part of a company-wide effort to save $100 million this year.

One Medical aims to reduce its fixed operating costs from 41% to 20% of total revenue by 2028, according to Insider’s report, adding that the company also plans to reduce the cost of each patient visit to $322 in 2024. , from $372 in 2023.

In an email to employees, the senior vice president of Amazon Health Services confirmed the elimination of “a few hundred positions” within Amazon Pharmacy and One Medical. The company was also realigning One Medical’s Finance, Legal and Technology teams at AHS, he said.

“We are seeing very strong momentum and positive customer feedback across all of our healthcare offerings. As we continue our mission to simplify healthcare for customers, we are realigning some resources to help accelerate our efforts to provide the better experience for our patients, customers, and members. Unfortunately, these adjustments will result in the elimination of a few hundred roles within Amazon Pharmacy and One Medical. We thank these team members for their contributions and will support them in their next steps. We will continue “engage with providers and invest in equipment and technology that will help us deliver high-quality, accessible care to more people.”


Amazon acquired One Medical last year with the acquisition announced in July 2022. The deal was valued at $3.9 billion. Amazon had agreed to acquire One Medical in July 2022.

One Medical is a member-based primary care organization offering virtual care and in-person visits.

The deal was another example of a company outside of traditional healthcare provided by hospitals and doctors’ offices entering the primary care market.

While healthcare retail is seen as a competitive threat to traditional medical and hospital services, these deals have not always gone smoothly. Experts have said there is a learning curve in healthcare and its low operating margins.


The job cuts in the healthcare division are just the latest to hit Amazon’s business units, according to the Searching Alpha report. Last year, the company cut jobs in the Audible, Prime Video, Twitch and Buy with Prime divisions.

Amazon recently announced better-than-expected fourth-quarter results and set optimistic guidance for the first quarter of 2024.

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