CVS Health plans to cut 2,900 jobs as part of its $2 billion cost reduction plan, a company spokesperson said Tuesday.
The spokesperson said the cuts represent less than 1% of the company's workforce and will primarily affect corporate staff. Frontline employees in CVS pharmacies, stores and distribution centers will not be affected.
Related: CVS conducting strategic review, considering breakup
Those who are affected will be notified within the next week, according to the spokesperson.
He said layoffs are part of a “multi-year initiative to deliver $2 billion in cost-savings by reducing expenses and investing in technologies."
CVS has been battling falling profit margins at its retail pharmacies, along with rising patient care costs at Aetna. The company cut its 2024 earnings estimate for the third straight quarter in August.
The company is conducting a strategic review of options that could include a possible breakup, a person familiar with the matter told Reuters on Monday. CVS could choose to separate the company’s retail and insurance businesses, but isn’t close to a decision at this point, the person said.
