CVS Health to Lay Off Nearly 2,900 Employees in Cost-Cutting Initiative According to Reuters

CVS Health announced on Tuesday that it will lay off approximately 2,900 employees, which constitutes less than 1% of its total workforce, as part of its efforts to reduce costs.

The job reductions are mainly focused on corporate positions and will not affect frontline employees in stores, pharmacies, and distribution centers. This move is in line with the company’s previously discussed strategy.

In a recent report, it was revealed that CVS is considering various options, including the possibility of splitting its retail and insurance divisions, in an attempt to improve its financial performance amidst increasing pressure from investors.

In August, CVS outlined a multi-year initiative aimed at achieving $2 billion in savings by streamlining operations and integrating technologies like artificial intelligence and automation into its processes.

Previously, the company had announced the elimination of around 5,000 non-customer-facing roles as part of its restructuring efforts last year.

Media outlets including CNN and STAT News have reported on the latest job cuts.