Amazon plans to cut jobs in the health care division after closing Telehealth

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Amazon Spheres in Seattle, Washington on September 20, 2018.

Todd Haselton | CNBC

Amazon is preparing to cut more than 150 jobs in Washington state, according to filings.

Amazon said 159 employees will be laid off from Amazon Care, based on Worker Adjustment and Retraining Notice (WARN) documents filed late Thursday. The WARN Act requires employers to provide 60 days advance notice of mass layoffs or plant closings.

Another 236 employees will be let go from Care Medical after being accused of treating Amazon Care patients, a separate WARN notice was also filed Thursday. Care Medical is an independent company contracted to work with Amazon.

According to the filing, the discounts are set to begin on December 1.

Amazon announced late last month that it would discontinue its telehealth service after December 31st.

Amazon Care was part of Amazon’s strategy to grow the healthcare industry alongside its pharma and consumer diagnostics operations. Even after closing Amazon Care, the company continued to expand into healthcare. In July, Amazon said it would buy OneMedical for $3.9 billion, which would bring together a network of boutique primary care clinics.

Amazon Care launched in 2019 as a pilot program for employees in and around the company’s Seattle headquarters before expanding to serve other employers. The service offers virtual urgent care visits as well as free telehealth consultations and home visits from nurses for exams and vaccinations.

When Amazon announced it was closing the service, the company said in a memo it sent employees the opportunity to look for roles elsewhere within Amazon.

“Many CARE employees will have the opportunity to join other healthcare organizations or other teams at Amazon — which we’ll discuss with many of you soon — and we’ll support employees looking for roles outside the company,” Amazon’s head of healthcare, Neil Lindsay, wrote in the memo.

An Amazon representative said in an emailed statement that victims will have the opportunity to find other jobs internally. “Supporting our employees during this transition is our top priority,” the statement said.

In the second quarter, Amazon shaved its headcount by 99,000 people to 1.52 million employees. The retailer is taking steps to reduce its workforce as it looks to cut costs after growing its staff and warehouse footprint during the Covid-19 pandemic.

See: Amazon pulls the plug on Amazon Care

Amazon pulls the plug on Amazon Care

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