Amazon cuts hundreds of jobs in Pharmacy, One Medical models: Read the memo

Amazon cuts hundreds of jobs in Pharmacy, One Medical models: Read the memo


Amazon has eradicated hundreds of jobs in its Pharmacy unit and One Medical divisions, the firm confirmed to CNBC.

“As we proceed to make it simpler for folks to get and keep wholesome, we now have recognized areas the place we will reposition assets so we will make investments in invention and experiences which have a direct affect on our prospects and members of all ages,” Neil Lindsay, who leads Amazon Health Services, wrote in a memo to staff on Tuesday. “Unfortunately, these adjustments will end result in the elimination of just a few hundred roles throughout One Medical and Amazon Pharmacy.”

Business Insider reported earlier on the cuts, which Lindsay stated preempted the firm’s deliberate announcement.

Amazon continues to trim its headcount after greater than a 12 months of layoffs. The firm minimize greater than 27,000 jobs between late 2022 and mid-2023, as the tech business downsized alongside hovering inflation and rising rates of interest. At the begin of this 12 months, Amazon introduced cuts in its Prime Video, MGM Studios, Buy with Prime, Twitch and Audible models.

CEO Andy Jassy has been aggressively slashing prices, focusing on some of the firm’s newer and extra unproven bets. A small quantity of staff had been let go in Amazon’s Pharmacy unit last July.

Amazon finance chief Brian Olsavsky said on a call with reporters following fourth-quarter earnings final week that the firm remains to be being cautious about headcount enlargement. “Where we will discover efficiencies and do extra with much less, we’ll try this as properly,” he stated.

Amazon acquired One Medical for roughly $3.9 billion in July 2022, the third-biggest deal in its historical past, as half of a multi-year effort to develop its presence in well being care. In addition to buying One Medical, it purchased PillPack in 2018 as an entry level into the on-line pharmacy market, and has launched a digital well being clinic service.

In a separate assertion on Tuesday, Lindsay stated Amazon has seen “very robust momentum and optimistic buyer suggestions” throughout its healthcare choices, and that it’s going to proceed to take a position in them.

Here’s the full memo from Lindsay:

Hi everybody, 

The previous 12 months has been extremely thrilling for all of our well being care companies, and we’re seeing great development for Amazon Pharmacy, One Medical, and Amazon Clinic. We reinvented the Amazon Pharmacy expertise all through 2023 to make it extra reasonably priced and handy for patrons to get the prescription drugs they want via RxPass, automated coupons, partnerships, and extra. We expanded Amazon Clinic nationwide, and since launch, the market has seen a 96% buyer satisfaction ranking. And, One Medical continues to develop its membership, benefiting from elevated consciousness from Amazon, reminiscent of the new Prime member profit, whereas additionally specializing in methods to repeatedly enhance the care expertise for members throughout One Medical and One Medical Seniors. We stay energized to study from One Medical’s DNA and scale mechanisms like CI-CARE, alongside Amazon’s Leadership Principles. 

As we proceed to make it simpler for folks to get and keep wholesome, we now have recognized areas the place we will reposition assets so we will make investments in invention and experiences which have a direct affect on our prospects and members of all ages. Unfortunately, these adjustments will end result in the elimination of just a few hundred roles throughout One Medical and Amazon Pharmacy.

We are conscious these function eliminations are tough for these impacted, in addition to those that have labored alongside them. We will help those that are affected with monetary help, profit continuation, and profession help to help in their transition, in addition to the alternative to use for brand new roles in the group.

We sometimes wait to speak about these outcomes till we will communicate with the people who find themselves immediately impacted. However, as a result of one of our teammates leaked this data externally, I wished you to listen to the particulars immediately from me. This just isn’t perfect, and I’m sorry when you heard about this externally first. We will talk with impacted staff tomorrow.

Please know that my management workforce and I’ll present steering on the path ahead following these adjustments. I stay up for working with you to proceed serving to our prospects and members alike get and keep wholesome.

Neil

CNBC is now accepting nominations for the 2024 Disruptor 50 listing — our annual take a look at non-public corporations utilizing breakthrough expertise to rework industries. Submit your nomination by Friday, Feb. 16. to d50nominations.cnbc.com



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