Prescription for Pink Slips: CVS Health to Cut 5,000 Jobs

CVS Health said Monday it is cutting approximately 5,000 jobs to focus more on healthcare services for its customers.

The move, which is supposed to help the company save money, will affect workers primarily in corporate jobs, the Wall Street Journal reported.

The decision is not expected to affect workers in the company’s stores, pharmacies, and clinics.

In November 2021, CVS Health announced its plan to close down 900 locations over three years, the news coming after the company evaluated population shifts, consumer buying patterns, and future health needs to better serve customers and benefit the business.

“Due to the findings, the company planned to cut back on store density in certain locations and close approximately 300 stores each year over the coming three years, beginning in spring 2022,” according to Breitbart News.

The Journal report continued:

Chief Executive Karen Lynch said the changes would enable CVS to “be at the forefront of a once-in-a-generation transformation in health care,” according to a staff memo reviewed by The Wall Street Journal.

The company is cutting down on travel expenses and its use of consultants and vendors, the memo said. It is also stopping certain business initiatives and using technology to increase productivity. Employees affected will receive severance pay, benefits and help with landing a new job elsewhere.

News of the layoffs comes as CVS is scheduled to share its quarterly earnings report soon.

“We’re committed to supporting our impacted colleagues, and they will receive severance pay and benefits, including access to outplacement services,” CVS Health Executive Director of Corporate Communications Mike Deangelis said, according to WPRI.

Overall, layoffs in the United States have stayed low despite widespread predictions of a recession. In June, the number of layoffs and discharges changed little at 1.5 million, the Department of Labor said Tuesday. That figure is low by historical standards. In February of 2020, just prior to the onset of the pandemic, there were 1.8 million layoffs.

In addition, job openings remained fairly unchanged at the close of June compared with May, Breitbart News reported Tuesday, adding it was “a sign that the labor market is still tight.”

“The Labor Department said Tuesday that job listings came in at 9.6 million on the last day in June, just where they were in the downwardly revised figure for the end of May,” the article reads.

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