CVS Health confirmed on Monday that it was planning on laying off nearly 2,900 employees nationwide in a move that is meant to help the company continue to operate at “peak performance.”
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The news was confirmed to WPRI in a statement from CVS spokesperson Mike DeAngelis, who said the layoffs were coming amidst “continued disruption, regulatory pressures, and evolving consumer needs and expectations.”
The pharmacy giant is now set to lay off around 1% of the company’s workforce, though corporate roles are primarily those being cut.
“The reductions will not impact front-line jobs in our stores, pharmacies, and distribution centers,” DeAngelis said.
DeAngelis says that the vast majority of those impacted by the cuts will be notified this week, although he stressed that the layoffs are “company-wide and not isolated to a single corporate office.”
The job cuts are part of a $2 billion cost-saving initiative that DeAngelis said will not only reduce CVS’s expenses but also invest in technologies to enhance efficiency and workflow.
“Before taking this step, we prioritized finding cost-saving everywhere we could, including closing open job postings,” DeAngelis explained. “Decisions on which positions to eliminate were extremely difficult and do not diminish the value that impacted colleagues have brought to the company.”
The company announced the layoffs as its business has been struggling as of late. More than a year ago, it reduced its staff by 5,000 in another cost-saving effort.
Next week, CVS is also planning on filing a Worker Adjustment And Retraining Notification notice in Rhode Island, DeAngelis said.
The WARN Act is a federal law that requires employers of more than 100 or more full-time employees to give the state 60 days advance notice of mass layoffs.
“We are committed to supporting these colleagues, who will receive severance pay and benefits, including access to outplacement services,” DeAngelis said. “We remain focused on our mission – continuing to provide the exceptional care and support our patients, members, clients, and customers deserve and depend on.”
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