TLDR
- Amazon ($AMZN) closed at $209.69, down 1.33%, as it expands into India’s healthcare sector with diagnostic test bookings.
- The company partners with Orange Health to offer diagnostics in major Indian cities like Bengaluru and Mumbai.
- CEO Andy Jassy warned staff that AI adoption will reduce corporate jobs, reshaping Amazon’s workforce in the coming years.
- Amazon plans to invest $105 billion in AI infrastructure in 2025, outpacing tech peers like Microsoft.
- AMZN stock has a YTD return of -4.42% but a strong 97.41% three-year return.
Amazon.com Inc. (NASDAQ: AMZN) closed at $209.69 on June 20, 2025, down 1.33% for the day. The e-commerce giant is making headlines with its healthcare expansion in India and a stark warning from CEO Andy Jassy about the potential job impacts from growing AI adoption.
Amazon Expands Healthcare Services in India
Amazon has expanded its Indian healthcare services to include diagnostic test bookings through its app. This service follows its launch of an online pharmacy two years ago and teleconsultation services six months ago. The new diagnostic offering represents what Amazon sees as a “long-term opportunity” in India’s growing healthcare market.
Amazon to invest $233 million in India to expand operations infrastructure, improve tech https://t.co/jJHSlDqmdI https://t.co/jJHSlDqmdI
— Reuters (@Reuters) June 19, 2025
Partnering with Orange Health, Amazon has rolled out diagnostic services in key Indian cities such as Bengaluru, Delhi, Gurgaon, Noida, Mumbai, and Hyderabad, with plans for gradual nationwide expansion. The company hopes to leverage its existing large customer base to drive adoption of these medical services.
Jayaramakrishnan Balasubramanian, category leader at Amazon Medical, emphasized that healthcare has the potential to become one of Amazon India’s biggest service categories, second only to groceries.
Competition and Industry Potential
India’s diagnostics space is becoming increasingly competitive, with digital platforms like Tata 1mg, Apollo 24/7, Pharmeasy, and Netmeds all diversifying into diagnostics. Experts point out that diagnostics offer higher profit margins compared to teleconsultation and pharmaceutical distribution, making it an attractive market despite pricing pressures.
Amazon aims to stand out through superior customer experience, aspiring to offer a connected care ecosystem where customers can manage health records, doctor consultations, and prescriptions in one digital space.
AI-Driven Job Reductions on the Horizon
While expanding services in healthcare, Amazon is also reshaping its workforce strategy due to AI. CEO Andy Jassy warned that generative AI and automation will likely reduce Amazon’s corporate headcount over the next few years. He cited the use of AI agents across inventory management, customer service, and internal operations as drivers of this transformation.
Jassy acknowledged that while certain jobs will disappear, new AI-related roles will emerge. He encouraged employees to adapt by learning AI technologies to remain competitive in the evolving job landscape.
Massive AI Infrastructure Investment
Amazon plans to invest approximately $105 billion in 2025 in building out AI infrastructure for its cloud unit, Amazon Web Services. This investment surpasses that of its major tech rivals, including Microsoft, which plans $80 billion in similar spending.
Despite the workforce reduction concerns, Amazon is betting heavily on AI to enhance efficiency and open new business opportunities, such as generative AI-powered shopping tools and advanced logistics forecasting.
