On October 2, 2024, American healthcare giant CVS Health announced that they will be laying off approximately 2,900 employees nationwide on Tuesday, October 1st, which accounts for less than 1% of their total workforce.
The layoffs are part of CVS Health’s previously announced plans and mainly affect corporate positions rather than front-line jobs in stores, pharmacies, and distribution centers.
According to a report by Reuters on Monday, CVS is exploring various options, including the possibility of splitting the company by separating the pharmacy chain stores from the insurance division as they aim to reverse the current situation.
A spokesperson for CVS, Mike DeAngelis, stated in a statement to WPRI under Nexstar on Monday that the pharmaceutical giant is cutting 2,900 jobs due to “ongoing disruption, regulatory pressures, and evolving consumer needs and expectations.”
“Maintaining competitiveness and operating at peak performance are crucial,” DeAngelis added. The majority of affected employees will receive notifications this week, emphasizing that the layoffs are “company-wide and not limited to a specific office.”
In August, CVS unveiled a multi-year plan aimed at saving $2 billion in costs through streamlining operations and implementing automation in their business.
DeAngelis mentioned that the layoffs are part of the company’s $2 billion cost-saving plan. These job cuts come at a time when CVS is facing business challenges.
As part of the restructuring plan, the company had already cut around 5,000 positions last year.
Overall, CVS Health’s decision to lay off employees reflects their strategic efforts to adapt to the evolving business landscape and to enhance operational efficiency amidst changing market dynamics.