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CVS Health has announced it will cut 2,900 jobs as part of a cost-cutting plan.
The layoffs will have a significant impact on corporate positions, a CVS spokesperson told FOX Business.
More than 300,000 people work for CVS in all its divisions, according to its website. The layoffs represent 1% of the company’s workforce.
The layoffs will have a significant impact on corporate positions, a CVS spokesperson told FOX Business. (Photos by Scott Olson/Getty Images)
The job cuts will not affect core operations at CVS stores, pharmacies or distribution centers, a spokeswoman said.
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“Our industry is facing constant disruption, regulatory pressures, and evolving consumer needs and expectations, so it’s important that we stay competitive and perform at the highest level. As we’ve previously disclosed, we’ve embarked on a multi-year plan to deliver $2 billion in cost savings through cost reductions and investments in technology to improve the way we work,” said a spokesperson for FOX Business.
Signs at a CVS pharmacy store in San Francisco, California, on Aug. 2, 2021. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
CVS Health CEO Karen Lynch said in August when she announced the plan that savings “will be driven by continuing to improve our operations and processes, continue to refine our business portfolio, and accelerate the use of artificial intelligence and automation across the business as we integrate and consolidate platforms.”
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CVS “prioritized finding savings across the board, including posting open jobs” before deciding to seek layoffs, a spokesperson told FOX Business.
The job cuts will not affect core operations at CVS stores, pharmacies or distribution centers. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
The company generated revenue of $91.2 billion in the second quarter. Its adjusted earnings per share fell 17% year over year to $1.83.
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CVS also lowered its earnings per share and cash flow guidance for the full year to “reflect continued pressure in the Health Care Benefits segment,” it said at the time.
The company operates more than 9,000 pharmacy stores.
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