Amazon lays off workers after closing Amazon Care

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(AMZN) has closed its health service – Amazon Care, health services that the company launched for its employees during the Corona epidemic, a service that later expanded to other corporate customers as well. The company stated after the closing “Although our healthcare subscribers liked many aspects of Amazon Care, it was not a full service that was competitive and sufficient for the large institutional customers we approached. It will not work long term.”

Now, Amazon has said that 159 employees will be laid off from Amazon Care, based on notices to employees who will be laid off and under the WARN Act. The WARN Act requires employers to give advance notice, usually within 60 days, of mass layoffs or plant closings. Also, 236 employees will be laid off from Care Medical, an independent company that contracted to work with Amazon as part of the effort to treat patients during the Corona period. The medical team will also be fired.

Another 236 workers will be let go from Care Medical, a team of doctors charged with treating Amazon Care patients, according to a separate WARN notice also filed Thursday. Care Medical is an independent company that contracted to work with Amazon. All layoffs will begin on December 1, 2022.

Amazon Care was one part of Amazon’s strategy to improve the healthcare industry, alongside its consumer pharmacy and diagnostics ventures. Even after closing Amazon Care, the company continued to expand in the healthcare sector. Last July, Amazon announced that it would purchase One Medical for $3.9 billion, bringing a network of boutique primary care clinics into the market.

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 provides virtual urgent care visits, as well as free telehealth (telephone) consultations and paid home visits from nurses for tests and vaccinations.

While Amazon announced that it would shut down the service and that it planned to lay off employees, the company said in a message to employees that it would give them the opportunity to find positions elsewhere at Amazon. “Many Care employees will have the opportunity to join other parts of the healthcare organization or other teams at Amazon – which we will discuss with many of you soon – and we will also support employees who are looking for roles outside the company” said Neil Lindsay, the person in charge of the health segment at the company.

This is not the first time this year that the retail giant has taken steps to reduce its workforce. This is because it is looking for ways to reduce costs after having significantly and at an unprecedented rate increased its employee inventory and its warehouses during the Corona period.

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