A girl walks previous a CVS Pharmacy in Washington, D.C., on Nov. 2, 2022.
Brendan Smialowski | AFP | Getty Images
CVS Health is chopping 5,000 jobs to scale back prices because the retail pharmacy large furthers its push into health-care choices, an individual acquainted with the matter advised CNBC on Tuesday.
The pharmacy chain had about 300,000 workers within the U.S. on the finish of final yr, based on a securities submitting.
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A CVS spokesperson confirmed the layoffs and mentioned they don’t seem to be anticipated to have an effect on “customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers.” The spokesperson added that workers laid off will obtain severance pay and advantages, together with entry to outplacement providers.
“As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses,” the spokesperson mentioned in an announcement to CNBC. “This unfortunately includes the need to eliminate a number of non-customer facing positions across the company.”
The Wall Street Journal first reported the job cuts Tuesday, citing an inner announcement to workers. It comes a day earlier than CVS studies its second-quarter earnings.
Rhode Island-based CVS operates greater than 9,000 retail places and 1,100 walk-in clinics nationwide. The firm owns one of many nation’s largest well being insurers and the most important pharmacy profit supervisor, which negotiates drug reductions with producers on behalf of well being insurers.
But CVS has sharpened its concentrate on well being care over the previous few years, following related strikes by rivals reminiscent of Walgreens and tech large Amazon.
The firm moved deeper into affected person care with its practically $8 billion acquisition of health-care supplier Signify Health and $10.6 billion deal to purchase Oak Street Health, which operates major care clinics for seniors.
CVS reduce its annual earnings forecast final quarter, citing the price of these offers.
Source: www.cnbc.com”