CVS is laying off 5,000 workers

CNN Newsource

New York (CNN) — CVS is laying off about 5,000 employees in a cost-cutting effort, the pharmacy chain confirmed Tuesday.

Reductions will occur in “non-customer facing positions,” primarily affecting its corporate staff, according to a statement given to CNN. CVS said it is “evolving to adapt to new consumer health needs and expectations” and that it “must take difficult steps to reduce expenses.”

“We do not expect there to be any impact to our customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers,” said the Rhode Island-based company.

The Wall Street Journal, which first reported the news, said the changes are part of CVS’ effort to focus on health services. In recent years, the chain has added more primary care offerings and expanded its “HealthHub” store layout.

“Throughout our company’s history, we’ve continuously adapted to market dynamics to lead the industry. The difficult decision we are making will set the company up for long-term success,” CVS said. The company employs about 300,000 people.

In 2021, CVS announced it was closing 900 stores, amounting to nearly 10% of its footprint, in response to the changing of “consumer buying patterns.”

The news comes ahead of CVS’ quarterly earnings report, due before the bell on Wednesday.

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