Amazon reorganizes health-care business in latest bid to crack multitrillion-dollar market

Core Insights - Amazon is restructuring its health business into six new units to simplify operations and enhance innovation [2][4][13] - The reorganization follows the departure of several senior health leaders, indicating potential challenges in leadership stability [5][6] - Amazon's long-term strategy in the healthcare sector remains ambitious, aiming to penetrate the complex U.S. healthcare market [8][10] Company Developments - Amazon Health Services will now operate under six groups, each led by experienced executives from within the company and One Medical [3][16] - The company has not conducted broad layoffs during this restructuring process, focusing instead on internal talent [4] - Despite recent leadership changes, Amazon maintains confidence in its organizational talent and growth potential [13] Market Position and Strategy - Amazon's entry into the healthcare market began with the acquisition of PillPack for approximately $750 million in 2018, followed by the purchase of One Medical for $3.9 billion in 2023 [8][9] - The company has faced setbacks, including the closure of its telehealth service, Amazon Care, and the disbandment of the Haven venture [10][12] - Amazon's pharmacy business has reportedly doubled its customer base in the past year, with plans to expand into 20 new cities [15] Financial Performance - One Medical reported a net loss of $101.1 million on revenue of $272.4 million in its last quarter as an independent entity [14] - Amazon has not disclosed specific financial figures for its health business but claims to be experiencing strong growth across its offerings [13]