Amazon’s healthcare business to be divided into six units after losing top health executives

An Amazon company logo marks the facade of a building, March 18, 2022, in Schoenefeld near Berlin. (AP Photo/Michael Sohn, File)

Amazon said on Friday its healthcare business will be divided into six new units as part of a restructuring effort, in a move that comes after recent top health executive departures.

The company’s chief medical officer, Sunita Mishra, stepped down last month, while Aaron Martin, who has been the vice president of the healthcare unit, is also set to step down.

This reorganization follows a series of other executive departures, including Vin Gupta, who served as chief medical officer of Amazon Pharmacy, and Trent Green, the CEO of One Medical.

Neil Lindsay, senior vice president of Amazon Health Services, said in an email to Reuters that these updates “reflect a broader strategy to better deliver for patients and accelerate innovation across the business.”

“If we can make one thing a little bit easier for a lot of people, we’ll save them a lot of time, a lot of money, and some lives,” Lindsay added.

Amazon has been expanding into the healthcare industry for years, starting with the acquisition of PillPack for US$750 million in 2018 and the launch of Amazon Pharmacy in 2020.

It bought One Medical for about US$3.9 billion in 2023 to gain access to primary care clinics and a membership model.

In February 2024, Amazon eliminated 115 jobs across its healthcare units, Lindsay had said in a letter to employees. A person cited by Business Insider, which first reported the job cuts, estimated up to 400 employees could lose their jobs.

CNBC first reported the restructuring efforts earlier on Friday.

The e-commerce giant has been working on an overhaul for the past several months, the CNBC report said, adding that Amazon has not conducted any broad layoffs as part of this reorganization.

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Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Alan Barona