OAN Staff Abril Elfi
4:30 PM – Tuesday, October 1, 2024
CVS Health will be reportedly discontinuing 2,900 positions at its establishments across the U.S., following the company’s new plan to reduce costs by $2 billion.
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A CVS Health spokesperson spoke with FOX Business in regards to the matter, explaining that the layoffs will mostly affect corporate positions, but not all of the cuts will solely be in the corporate sector.
“Employees whose jobs are part of the reduction will receive severance pay and benefits, including access to outplacement services, the company added,” according to CBS News.
The company’s website states that over 300,000 people work for CVS across its segments, which means the cuts only represent 1% of their workforce.
The spokesperson continued, claiming that the layoffs will not affect front-line jobs in CVS stores, pharmacies, or distribution centers.
“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.
CVS “prioritized finding cost savings everywhere we could, including close open job postings” prior to deciding to pursue the layoffs, the company noted.
Back in August, CVS Health CEO Karen Lynch said 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 as we consolidate and integrate platforms.”
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