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CVS Health to lay off nearly 5,000 employees in cost-cutting drive
https://www.whatjobs.com/news/usa/us-business-news/cvs-health-to-lay-off-nearly-5000-employees-in-cost-cutting-drive
By Nithya Bose in US business news, posted August 1, 2023
CVS Health is cutting around 5,000 jobs to streamline operations and lower costs, with a renewed focus on healthcare services.
The company said the affected positions would primarily be corporate roles, ensuring customer-oriented roles in stores, pharmacies, and clinics would not be impacted.
CEO Karen Lynch said in a staff memo that these changes would position CVS at the forefront of a transformative shift in the healthcare industry.
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The firm will introduce various cost-cutting measures, including reducing travel expenses, limiting the use of consultants and vendors, halting specific business initiatives, and leveraging technology to boost productivity.
The employees affected by the job cuts will receive severance pay, benefits, and support in finding new employment opportunities elsewhere.
CVS Health, headquartered in Woonsocket, Rhode Island, employed over 300,000 workers, primarily in the US, by the end of the previous year.
The healthcare giant operates an extensive network of over 9,000 retail locations and 1,100 walk-in clinics nationwide.
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Alongside its retail presence, the company owns one of the nation's largest health insurers and the largest pharmacy-benefit manager.
CVS is shifting its business strategy to strengthen its patient care position and taking on a more substantial role in treating patients.
Recently, it closed a $10.6 billion deal to acquire Oak Street Health, an operator of primary-care clinics for the elderly.
In March, the company completed an almost $8 billion acquisition of home-healthcare firm Signify Health.
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