Amazon lays off hundreds in its medical divisions – including its primary care business

Amazon has eliminated hundreds of positions within its Pharmacy and One Medical divisions. One Medical was Amazon’s foray into employer-based primary care, teaming up with major employers to offer health care and expanding the service to Prime members. Amazon bought One Medical in February for $3.9 billion and announced discounted memberships for Prime users in November.

In a memo to employees, Neil Lindsay, the leader of Amazon Health Services, said: “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 invention and experiences that have a direct impact on our customers and members of all ages. Unfortunately, these changes will result in the elimination of a few hundred roles across One Medical and Amazon Pharmacy.”

Word of the cuts leaked out before the official company announcement, meaning some employees first found out about the news externally, which the company apologized to employees for happening.

Despite the layoffs, Lindsay previously told investors that the company had seen strong momentum and positive customer feedback across its health care offerings and that investments will continue.

These cuts are the most recent at Amazon, which as a whole, has cut more than 25,000 jobs in the last year or so. Previous cuts were made in its Prime Video, MGM Studios, Buy with Prime, Twitch, and Audible units. The cuts are part of a larger downsizing trend in the tech industry as it battles inflation and less market demand