CVS is cutting 2,900 jobs

CVS Health announced it would cut 2,900 jobs as part of a cost-cutting plan.

The layoffs will primarily impact corporate positions, a CVS spokesperson told FOX Business.

More than 300,000 people work for CVS across all segments, according to the company's website. The cuts affect 1% of the company's workforce.

The layoffs will primarily impact corporate positions, a CVS spokesperson told FOX Business. (Scott Olson/Getty Images/Getty Images)

The job cuts will not impact front-line jobs at CVS stores, pharmacies or distribution centers, the spokesman said.

CVS cuts its outlook and plans $2 billion in cost-cutting measures

“Our industry faces ongoing disruption, regulatory pressures and changing consumer needs and expectations. It is therefore crucial that we remain competitive and deliver excellence. As we previously announced, we have launched a multi-year initiative to deliver $2 billion in savings through cost reductions and investments in technology to improve the way we work,” the spokesperson told FOX Business.

Signage at a CVS Pharmacy store in San Francisco, California, on August 2, 2021. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

CVS Health CEO Karen Lynch said in August when she announced the initiative that the savings would come “from further streamlining and optimizing our operations and processes, further streamlining our business portfolio, and accelerating the use of artificial intelligence and automation across the board.” “We consolidate and integrate platforms.”

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CVS “prioritized finding cost savings wherever we could, including closing open job postings” before deciding on the layoffs, the spokesperson told FOX Business.

The job cuts will not impact frontline jobs at CVS stores, pharmacies or distribution centers. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

The company reported total revenue of $91.2 billion in the second quarter. Adjusted earnings per share fell 17% year over year to $1.83.

THE STORY OF CVS: FROM A SMALL RETAILER IN MASSACHUSETTS TO A LEADING HEALTH SOLUTIONS COMPANY

CVS also lowered its full-year earnings per share and cash flow forecast to “reflect continued pressure in the Health Care Benefits segment,” it said at the time.

The company operates more than 9,000 pharmacy branches.