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CVS Health is laying off about 2,900 employees across the company and the affected positions are “primarily corporate functions,” Mike DeAngelis, executive director of corporate communications, confirmed to USA TODAY on Tuesday.

“Our industry faces ongoing disruption, regulatory pressures and changing customer needs and expectations. Therefore, it is critical that we remain competitive and achieve excellence,” DeAngelis said in an emailed statement to USA TODAY.

DeAngelis also said in the statement that the company “prioritized cost savings wherever we could, including closing open job postings” before making the decision and that the layoffs “will not impact front-line jobs in our stores.” , pharmacies and in sales”. Centers.”

“Decisions about which positions to eliminate were extremely difficult,” DeAngelis said, noting that departing employees would receive severance and benefits. The layoffs represent less than 1% of the company's workforce, DeAngelis said.

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CVS Health experienced another round of layoffs last year

CVS Health also eliminated about 5,000 “non-customer-facing” positions to reduce costs in 2023.

The cuts affected less than 2% of the company's total workforce, which numbered about 300,000 employees at the end of 2022.

“Our industry is evolving to adapt to new consumer health needs and expectations. “As part of a company initiative to reprioritize our investments in health care and technology, we must take difficult steps to reduce costs,” the company told USA TODAY in 2023.

In early 2023, the company completed a $10.6 billion deal to purchase Oak Street Health, a company that operates primary care centers for low- to moderate-income people with Medicare Advantage plans, which are privately run versions The federal government's program for older people is 65 and older.

With the acquisition, CVS Health sought to capitalize on the federal government's interest in reducing costs and improving people's health through its Medicare program.

“This agreement with CVS Health will accelerate our ability to achieve our mission and continue to improve health outcomes, reduce medical costs and provide a better patient experience while delivering significant value to our shareholders,” said Mike Pykosz, CEO of Oak Street Health Timing of the deal.

Gabe Hauari is a nationally featured news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].

On By John Fenwick

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