CVS is cutting nearly 3,000 jobs to cut costs

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

“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 achieve $2 billion in cost savings by cutting costs and investing in technology to improve the way we work,” the spokesperson told Fox Business.

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.”

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

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.

CVS also lowered its full-year earnings per share and cash flow forecast to “reflect ongoing pressures in the health benefits segment,” it said at the time.

The company operates more than 9,000 pharmacy branches.