CVS is laying off 2,900 workers to cut costs. Here's what you should know.

CVS Health said it would cut about 2,900 employees as part of its goal to cut costs by $2 billion.

The job cuts affect about 1% of the healthcare company's workforce, a CVS spokesperson told CBS MoneyWatch via email.

Some pharmacy chains have struggled in recent years with cutbacks from inflation-weary consumers as shoppers reduced spending on over-the-counter items. Walgreens plans to do this close up to a quarter of its 8,600 retail locations as some customers chose to shop elsewhere for essentials.

In its statement, CVS pointed to “ongoing disruptions, regulatory pressures and changing consumer needs and expectations,” adding: “It is critical that we remain competitive and deliver excellence.”

Last quarter, CVS said same-store sales of over-the-counter products fell 4%.

What you should know about CVS job cuts

CVS, which owns its drugstore chain as well as health insurer Aetna and pharmacy benefits manager CVS Caremark among other brands, said the 2,900 job cuts will primarily impact corporate functions.

“The cuts will not impact frontline jobs in our stores, pharmacies and distribution centers,” CVS said.

Employees whose positions are affected by the cut will receive severance pay and additional benefits, including access to outplacement services, the company added.

“The vast majority of affected colleagues will be notified this week,” the CVS spokesperson noted.

Additionally, CVS is reportedly conducting a strategic review of its business that could include a breakup of the healthcare company, the Wall Street Journal reported, citing people familiar with the matter.

When asked about the report, the CVS spokesperson said: “CVS Health's management team and Board of Directors continually seek opportunities to create shareholder value. We remain focused on driving performance and delivering high-quality healthcare products and services enabled by our unmatched scale and integrated model.”