CVS Well being is shedding 5,000 workers as a part of an effort to shed prices, the retail and pharmacy chain confirmed on Tuesday.
The layoffs will primarily have an effect on “non-customer going through positions” akin to company roles, the corporate stated, including that it doesn’t count on the transfer to impression brick-and-mortar shops, pharmacies and clinics.
“Our trade is evolving to adapt to new shopper well being wants and expectations,” CVS instructed ABC Information in a press release. “As a part of an enterprise initiative to reprioritize our investments round care supply and expertise, we should take troublesome steps to cut back bills.”
Laid-off staff will obtain severance pay and advantages, the corporate stated, together with entry to “outplacement providers” to assist discover a job elsewhere.
“We’re dedicated to supporting impacted colleagues,” the corporate stated.
As of December, CVS employed roughly 300,000 staff worldwide, in keeping with a securities filing. The just-announced layoffs will remove lower than 2% of the corporate’s workforce.
The Rhode Island-based firm operates greater than 9,000 retail places and 1,100 walk-in medical clinics, the securities submitting stated. It additionally owns one of many nation’s largest well being insurers, Aetna, in addition to the nation’s largest pharmacy-benefit supervisor, CVS Caremark.
The transfer to slash staff comes as CVS pivots towards expanded healthcare providers, and away from the journal and snack aisles.
In Might, the corporate closed a $10.6 billion acquisition of Oak Road Well being, a Chicago-based major care supplier that operates greater than 150 healthcare facilities in 21 states.
Two months earlier, the corporate closed an $8 billion deal to accumulate Signify Well being, a New York-based residence healthcare firm.
In 2021, CVS introduced plans to shut roughly 900 shops over the following three years because it evaluated inhabitants shifts, shopper shopping for patterns and projected wants. As a part of this “strategic overview” of its retail enterprise, the corporate stated it might “scale back retailer density” in sure places.
“We don’t anticipate there might be any impression to our shoppers and prospects as we stay targeted on our mission – persevering with to supply the distinctive care and assist our prospects, sufferers and communities deserve and rely on,” the corporate stated in Tuesday’s assertion.
“All through our firm’s historical past, we have repeatedly tailored to market dynamics to steer the trade,” the assertion added. “The troublesome choice we’re making will set the corporate up for long-term success.”
CVS is about to carry their subsequent quarterly earnings name Wednesday morning. Shares of CVS ticked down 1% in early buying and selling on Tuesday.