CVS is cutting nearly 3,000 jobs as it cuts costs

CVS Health has announced it will cut 2,900 jobs as part of a cost-cutting plan.

The layoffs will mainly impact corporate positions, a CVS spokesperson told Fox Business.

According to the website, more than 300,000 people work for CVS across all segments.

The cuts represent 1% of the company’s workforce.

The job losses will not affect frontline jobs at CVS stores, pharmacies or distribution centers, the spokesperson said.

“Our industry faces ongoing disruption, regulatory pressure and changing consumer needs and expectations. So it is crucial that we remain competitive and deliver top performance.

“As we previously announced, we have embarked on a multi-year initiative to deliver $2 billion in cost savings by reducing costs and investing in technologies to improve the way we work,” the spokesperson told Fox Business.

CVS Health CEO Karen Lynch said in August when she announced the initiative that the savings “would be driven by further streamlining and optimizing our operations and processes, continuing to rationalize our business portfolio and accelerating the use of artificial intelligence and automation across the enterprise. we consolidate and integrate platforms.”

CVS “prioritized finding cost savings wherever we could, including closing open positions” before deciding to pursue layoffs, the spokesperson told Fox Business.

The company generated total revenue of $91.2 billion in the second quarter. Adjusted earnings per share fell 17% year over year to $1.83.

CVS also lowered full-year earnings per share and cash flow guidance to “reflect continued pressure in the health care benefits segment,” it said at the time.

The company operates more than 9,000 pharmacies.