CVS Well being stated it’s chopping about 2,900 staff as a part of a objective to cut back prices by $2 billion.
The job cuts represents about 1% of the well being care firm’s workforce, a CVS spokesperson advised CBS MoneyWatch through e-mail.
Some pharmacy chains have struggled lately amid cutbacks from inflation-weary customers, with customers paring their spending on non-prescription objects. Walgreens is planning to shut as much as 1 / 4 of its 8,600 retail places as some clients have turned elsewhere to purchase fundamentals.
In its assertion, CVS pointed to “continued disruption, regulatory pressures, and evolving client wants and expectations,” including that “it’s crucial that we stay aggressive and function at peak efficiency.”
In its most up-to-date quarter, CVS stated its same-store gross sales for non-prescription merchandise declined 4%.
What to know in regards to the CVS job cuts
CVS, which together with its drugstore chain additionally owns medical health insurance supplier Aetna and pharmacy advantages supervisor CVS Caremark, amongst different manufacturers, stated the two,900 job cuts will primarily have an effect on company roles.
“The reductions won’t influence front-line jobs in our shops, pharmacies and distribution facilities,” CVS stated.
Staff whose jobs are a part of the discount will obtain severance pay and advantages, together with entry to outplacement providers, the corporate added.
“The overwhelming majority of impacted colleagues will probably be notified this week,” the CVS spokesperson famous.
Individually, CVS is reportedly conducting a strategic evaluation of its enterprise, which may embody a breakup of the well being care firm, the Wall Avenue Journal reported, citing individuals aware of the matter.
Requested in regards to the report, the CVS spokesperson stated: “CVS Well being’s administration staff and Board of Administrators are frequently exploring methods to create shareholder worth. We stay targeted on driving efficiency and delivering top quality healthcare services enabled by our unmatched scale and built-in mannequin.”
