OAN Staff James Meyers
9:45 AM – Wednesday, October 2, 2024
CVS Health announced the company is planning to cut 2,900 jobs in an effort to cut costs, the company said in a statement on Tuesday.
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“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,” a spokesperson said in a statement.
The amount of employees laid off represents less than 1% of CVS Health’s (CVS) workforce.
“Impacted positions are primarily corporate roles. The reductions will not impact front-line jobs in our stores, pharmacies and distribution centers,” the spokesperson added.
The latest cuts add to the over 5,000 layoffs disclosed after last year. In 2021, CVS Health announced that it would close around 900 stores between 2022 and 2024.
“Our industry faces continued disruption, regulatory pressures and evolving consumer needs and expectations,” the spokesperson said Tuesday.
The cuts come as shoppers are switching to buy items online from Amazon and at big-box chains such as Target, Walmart and Costco. Additionally, Dollar General’s growth has impacted drug store chains in rural areas.
Additionally, CVS is reportedly conducting a strategic review of its business, which could include a breakup of the healthcare company, the Wall Street Journal reported.
Furthermore, CVS Health is making additional investments in artificial intelligence, as well as in robotics, “to further automate, reduce cost and improve the experience for all of its constituents,” according to its latest annual report.
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