Restructuring: 5,000 CVS Health Employees To Lose Their Jobs

CVS Health has confirmed the elimination of several “non-customer facing positions” across the company as part of an enterprise initiative to refocus investments on care delivery and technology. The move affects approximately 5,000 jobs, according to The Wall Street Journal. While the company has not specified the number of vacant positions to be eliminated or the extent of layoffs, a spokesperson assured that “customer-facing colleagues in CVS stores, pharmacies, clinics, or customer service centers” will not be impacted. Affected employees will receive notifications in the coming weeks.

The decision aligns with CVS Health’s strategy to reduce expenses and slow down acquisitions while winding down its clinical trials. In May, CVS Health announced that it would not pursue major acquisitions in the near future after recent purchases of Signify Health and Oak Street Health. The company also plans to phase out its clinical trials unit, launched two years ago, to focus on core business and long-term strategic priorities, with a full exit expected by the end of 2024.

CVS Health has been actively expanding its network through acquisitions, including the in-home care company Signify Health for $7.8 billion and Medicare-focused Oak Street Health for $10.6 billion. As of the first quarter of 2023, the company reported a profit of $2.1 billion and exceeded 25 million members through its insurance arm, Aetna.

The company is set to release its second-quarter results on August 2, providing further insight into its financial performance and ongoing initiatives.

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