CVS to lay off nearly 3,000 employees

WOONSOCKET, R.I. (WPRI) — CVS Health is planning to lay off nearly 3,000 employees nationwide, a company spokesperson confirmed Monday.

CVS spokesperson Mike DeAngelis said in a statement to Nexstar’s WPRI that the pharmacy giant will be eliminating 2,900 jobs, citing “continued disruption, regulatory pressures and evolving consumer needs and expectations.”

“It is critical that we remain competitive and operate at peak performance,” DeAngelis added.

He said the layoffs make up 1 percent of the company’s overall workforce, and it will be primarily corporate roles that are cut.

“The reductions will not impact front-line jobs in our stores, pharmacies and distribution centers,” DeAngelis said.

DeAngelis said the job cuts are part of a $2 billion cost-saving initiative designed to not only reduce expenses, but also invest in technologies to enhance efficiency and workflow. The layoffs come as the business has been facing business challenges.

“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.”

DeAngelis said the vast majority of impacted employees will be notified this week, although he stressed that the layoffs are “company-wide and not isolated to a single corporate office.”

The spokesperson said CVS plans to file a Worker Adjustment And Retraining Notification (WARN) notice in Rhode Island, where the company is headquartered, next week.

The WARN Act is a federal law that requires employers of 100 or more full-time workers to give the state 60 days advance notice of mass layoffs. Companies must comply if they’re planning to close or discontinue a facility of more than 50 workers, lay off between 50 and 499 workers if that number represents at least 33 percent of the company’s workforce, or lay off 500 or more workers at a single site.

“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.”

The layoffs come more than a year after CVS slashed 5,000 jobs to reduce expenses.