Amazon Health Services cuts hundreds of jobs
TEXAS, UNITED STATES — Amazon Health Services announced significant job cuts across its One Medical and Amazon Pharmacy divisions, continuing the wave of layoffs enacted by the tech giant over the past year.
The company will eliminate a few hundred roles within the two healthcare units in an effort to “reposition resources” and accelerate efforts to deliver the best “invention and experiences” for customers and members, according to a memo by Senior VP Neil Lindsay obtained by Forbes.
The cuts impact One Medical, the membership-based primary care chain acquired by Amazon last February for $3.9 billion, as well as the company’s own online Amazon Pharmacy.
Despite the layoffs, Amazon maintains both sectors have seen “tremendous growth,” with One Medical achieving a “96% customer satisfaction rating.”
Affected employees will be supported with financial aid, continued benefits, career assistance, and opportunities to apply for other roles within the organization.
The move adds to over 27,000 job cuts made by Amazon since early 2023. It occurs alongside similar workforce reductions recently announced by DocuSign, affecting 6% or around 440 employees.
Social media company Snap Inc. (Snap), the parent company of popular messaging app Snapchat, also announced plans to lay off approximately 10% or over 500 workers to “reduce hierarchy and promote in-person collaboration.”
The layoffs at Snap come amid a broader trend in the tech industry, with major players like Alphabet, Paypal, and Salesforce also announcing layoffs in January.
According to data aggregation website Layoffs.fyi, over 240,000 employees from the tech segment were laid off globally in 2023, and over 33,000 from 134 tech companies so far this year.
