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 Amazon is preparing to cut more than 150 jobs as it exits its telehealth service, known as Care, according to filings in Washington state.

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 he said. Late last month, it will shut down its telehealth service after December 31. Amazon said it chose to shut down the service because the company decided it was not a “full enough offering” for customers.

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 he said. It will acquire Medicaid for $3.9 billion, which will bring 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.

Amazon representatives did not immediately respond to requests for comment on the claims.

in the Second quarterAmazon shaved 99,000 people off its headcount of 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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