CVS Health is laying off nearly 3,000 'primarily corporate roles' in a cost-cutting move, the company confirmed to USA TODAY Tuesday.
Overview of Layoffs
CVS Health is laying off approximately 2,900 employees across the company, primarily affecting corporate roles. The layoffs are part of the company's strategy to remain competitive in a disrupted health industry.
Company's Statement
Mike DeAngelis, the executive director of corporate communications at CVS, stated that the layoffs are a response to regulatory pressures and changing customer needs. The company has closed open job postings to prioritize cost savings.
Impact on Workforce
This reduction accounts for less than 1% of CVS's total workforce. The layoffs will not impact front-line jobs in stores, pharmacies, or distribution centers, with affected employees receiving severance and benefits.
Previous Layoffs
In the previous year, CVS also cut about 5,000 positions classified as 'non-customer-facing' as part of an effort to reduce costs.
Future of the Company
CVS Health aims to refocus its investments around care delivery and technology, especially following their $10.6 billion acquisition of Oak Street Health aimed at improving Medicare services.
