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CVS Health announced plans to cut 2,900 jobs as a cost-cutting initiative.
According to a spokesperson, CVS Health’s recent decision to cut 2,900 jobs as part of a cost-saving plan will primarily impact corporate roles, with no cuts to front-line positions in stores, pharmacies, or distribution centers. The layoffs account for about 1% of CVS’s workforce, which includes more than 300,000 employees across its segments.
“Our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations, so it is critical that we remain competitive and operate at peak performance. As we previously disclosed, 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,” the spokesperson told FOX Business.
In August, CVS Health CEO Karen Lynch announced that the company’s cost-cutting initiative would focus on streamlining operations, optimizing processes, and incorporating artificial intelligence and automation. This effort, aimed at consolidating and integrating platforms, led to the decision to cut 2,900 corporate jobs.
Before resorting to layoffs, CVS prioritized finding savings through measures like closing open job postings. Despite these efforts, the company’s second-quarter earnings per share dropped 17% year-over-year to $1.83. CVS also lowered its full-year earnings and cash flow guidance, citing ongoing pressure in its Health Care Benefits segment. The company, which operates over 9,000 pharmacy stores, reported total revenues of $91.2 billion in the second quarter.
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