Amazon.com, Inc. (Nasdaq: AMZN) is closing the doors of its roughly three-year old healthcare service Amazon Care. The business unit provided virtual and in-home health service initially for Amazon employees but has since expanded to cater corporate clients.

In an internal email sent on Wednesday by Amazon Health Services senior vice president Neil Lindsay to employees, the executive reasoned that Amazon Care “is not a complete enough offering for the large enterprise customers [they] have been targeting, and wasn’t going to work long-term.”

“This decision wasn’t made lightly and only became clear after many months of careful consideration,” said Lindsay.

The move is surprising in such that the company just announced in July 2022 the US$3.9 billion deal to acquire primary care company One Medical. The firm however noted that the shutdown will only be limited to Amazon Care and not the other services under the umbrella healthcare division.

This will, however, affect the jobs of around 400 employees working for the healthcare service. Lindsay wrote that many of the employees “will have an opportunity to join other parts of the Health Services organization or other teams at Amazon,” but the firm is also making moves to “support employees looking for roles outside of the company.”

Despite closing down the unit, Lindsay added that “building Amazon Care has deepened [their] understanding of what’s needed long-term to deliver meaningful health care solutions for enterprise and individual customers.”

Amazon Care is expected to cease operating by December 31, 2022.

Amazon.com last traded at US$136.05 on the Nasdaq.

Information for this briefing was found via Geek Wire, The New York Times, Washington Post, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.