CVS Health announced it will cut 2,900 jobs as part of a cost-cutting plan.
A CVS spokesperson told Fox Business that the layoffs primarily impact the company's position.
According to the CVS website, CVS employs more than 300,000 people across its divisions.
The layoffs represent 1% of the company's workforce.
A spokesperson said the layoffs will not affect front-line jobs at CVS stores, pharmacies or distribution centers.
“As our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations, it is critical that we remain competitive and operate at peak performance.
“As previously disclosed, we have embarked on a multi-year effort to realize $2 billion in cost savings by reducing expenses and investing in technology that enhances the way we work.” a representative told Fox Business.
When CVS Health CEO Karen Lynch announced the initiative in August, she said the savings would come from “further streamlining and optimizing our operations and processes, continuing to streamline our business portfolio, and expanding our business portfolio across the enterprise.” This will be driven by the accelerated use of artificial intelligence and automation.” We integrate and integrate platforms. ”
Before making the decision to cut jobs, CVS “prioritized finding cost savings wherever possible, including closing open positions,” a spokesperson told FOX Business.
The company had total revenue of $91.2 billion in the second quarter. Adjusted earnings per share decreased 17% year over year to $1.83.
CVS also said at the time that it had lowered its full-year earnings per share and cash flow outlook to “reflect continued pressures in the health benefits segment.”
The company operates more than 9,000 pharmacy stores.
