Amazon was clearly on the hunt to expand its healthcare business after the 2022 $3.9 billion acquisition of One Medical. That became a potential additional offering to its Prime members last fall.
But then, as an internal memo from Amazon Health Services Senior Vice President Neil Lindsay, made available by the company, explained that Amazon "eliminated a few hundred roles across One Medical and Amazon Pharmacy, and realigned One Medical's Finance, Legal, and Tech teams into AHS." It then went on to say, "we do believe these changes are necessary to enable us to invest more in delivering the best experience for our customers, members, and patients."
The memo then went on to address expected criticism. "As often happens with changes like this, some pundits may speculate that we're eliminating roles because our health care business is underperforming—don't believe this speculation," Lindsay wrote. "The most successful businesses, those that deliver the best experience for their customers, typically go through phases of reorganization or realignment to put energy where they need it most. You have likely seen many healthy businesses both inside and outside of Amazon reprioritizing recently, leading to role reductions in some areas and additions in others. That's what this is."
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In a prepared statement, Lindsay said the company was "seeing very strong momentum and positive customer feedback across our health care offerings." The job cuts were "realigning some resources" that resulted in the elimination of the jobs while continuing "hiring providers and investing in teams and technology that will help us provide high-quality and accessible care to more people."
GlobeSt.com asked the following questions:
If the issue is firing some while hiring others, where did Amazon get the necessary mix wrong?
What further actions does the company expect to take?
How does this potentially affect real estate commitments?
Will there be fewer physical offices or in warehousing/logistics spaces?
The company didn't answer the first two questions but noted there would be no impact on its logistics or fulfillment network and that any changes to its corporate real estate footprint wouldn't be the result of role eliminations.
The answer didn't eliminate the possibility of real estate reductions.
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