Amazon to Restructure Healthcare Business, Cuts Units into 6 New Entities

Bengaluru, India - In a significant move aimed at transforming its healthcare business, Amazon announced on Friday that it will divide its healthcare operations into six new units as part of a reorganization effort. This move comes after several high-profile executive departures in the healthcare sector.

The restructuring plan is part of Amazon's efforts to deliver better patient outcomes and accelerate innovation across its health services. Neil Lindsay, senior vice president of Amazon Health Services, stated that this strategy update reflects their determination to make healthcare more accessible and beneficial for patients.

Amazon entered the healthcare market several years ago with the acquisition of PillPack in 2018 for $750 million, followed by the launch of Amazon Pharmacy in 2020. The company acquired One Medical for approximately $3.9 billion in 2023, expanding its access to primary care clinics and membership models. However, this expansion has been accompanied by job cuts.

As part of a broader restructuring effort reported earlier this week, Amazon is expected to simplify its healthcare operations under six new units. While details on the specific roles and responsibilities within these new units are not publicly available, the move is aimed at enhancing innovation and service delivery to patients.

It remains unclear how many jobs may be impacted by these organizational changes, but insiders suggest that Amazon may cut hundreds of positions as part of this reorganization. The company's recent strategic shift aims to revamp its healthcare strategy while continuing its commitment to delivering high-quality services to customers worldwide.

Amazon has been refining its strategy in recent months with a focus on adapting to changing market dynamics and improving patient access to care services.