CVS Health To Lay Off 3,000 Workers In Cost-Cutting Drive

CVS Health is planning to cut about 2,900 jobs as part of an effort to reduce costs, the U.S. healthcare company announced, Olesya Dmitracova reported for CNN.

The layoffs represent less than 1% of CVS Health’s workforce. I Photo: CVS Health Facebook

“We’ve embarked on a multi-year initiative to deliver $2 billion in cost savings by reducing expenses and investing in technologies to enhance how we work,” a company spokesperson said in a statement.

The layoffs represent less than 1% of CVS Health’s workforce.

“Impacted positions are primarily corporate roles. The reductions will not affect front-line jobs in our stores, pharmacies, and distribution centers,” the spokesperson added. The job cuts, which affect a company that operates a network of pharmacies across the U.S., add to the approximately 5,000 layoffs disclosed last year.

In 2021, CVS Health announced plans to close around 900 stores between 2022 and 2024.

“Our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations,” the spokesperson said Tuesday. U.S. drugstore chains are struggling due to falling reimbursement rates for prescription drugs, according to industry analysts.