Amazon plans job cuts in health-care unit after shuttering telehealth

The Amazon Spheres in Seattle Washington on Sept. twentieth, 2018.

Todd Haselton | CNBC

Amazon is making ready to chop greater than 150 jobs because it winds down its telehealth providing referred to as Amazon Care, based on filings submitted in Washington state.

Amazon mentioned 159 staff might be laid off from Amazon Care, based mostly on Employee Adjustment and Retraining Notification (WARN) filings submitted late Thursday. The WARN Act requires employers to supply advance discover, typically inside 60 days, of mass layoffs or plant closings.

One other 236 staff might be let go from Care Medical, a staff of clinicians that was charged with treating Amazon Care sufferers, based on a separate WARN discover additionally filed Thursday. Care Medical is an unbiased firm that was contracted to work with Amazon.

The layoffs are slated to start Dec. 1, based on the filings.

Amazon mentioned late final month that it’ll wind down its telehealth service after Dec. 31. The corporate selected to shutter the service after figuring out it wasn’t “a whole sufficient providing” for purchasers, Amazon mentioned.

Amazon Care was one piece of Amazon’s technique to upend the healthcare business, alongside its pharmacy and shopper diagnostics ventures. Even after shuttering Amazon Care, the corporate has continued its growth into well being care. In July, Amazon mentioned it could purchase One Medical for $3.9 billion, bringing in a community of boutique main care clinics.

Amazon Care launched in 2019 as a pilot program for workers in and across the firm’s Seattle headquarters, earlier than increasing to serve different employers. The service supplies digital pressing care visits, in addition to free telehealth consults and in-home visits for a price from nurses for testing and vaccinations.

On the time that Amazon introduced it could shutter the service, the corporate mentioned in a memo to staff that it could give them the chance to search out roles elsewhere at Amazon.

“Many Care staff could have a chance to hitch different components of the Well being Companies group or different groups at Amazon — which we’ll be discussing with lots of you shortly — and we’ll additionally help staff searching for roles exterior of the corporate, “Amazon Well being Companies lead Neil Lindsay wrote within the memo.

An Amazon consultant reiterated in an emailed assertion that these affected could have the chance to search out different jobs internally. “Our precedence continues to be supporting our staff throughout this transition,” the assertion mentioned.

Within the second quarter, Amazon shaved its headcount from 99,000 folks to 1.52 million staff. The retail big is taking steps to shrink its workforce because it seems to be to chop prices after rising its employees and warehouse footprint at an unprecedent tempo through the Covid-19 pandemic.

WATCH: Amazon pulls the plug on Amazon Care

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