In order to concentrate more on providing healthcare services to its clients, CVS Health stated this week that it will eliminate about 5,000 employees.
The decision, which is intended to save the firm money, would mostly impact employees in corporate employment, according to the Wall Street Journal.
The choice is not anticipated to have an impact on employees at the company’s retail outlets, pharmacies, or clinics.
In order to better serve consumers and grow the business, CVS Health examined population fluctuations, consumer spending trends, and future health requirements before announcing its decision to shut down 900 sites over the course of three years in November 2021.
According to Breitbart News, “the company planned to reduce store density in certain locations and close about 300 stores per year throughout the next three years, starting in spring 2022.”
The Journal’s story went on to say:
According to a staff document viewed by The Wall Street Journal, Chief Executive Karen Lynch said that the modifications will allow CVS to “be at the forefront of this once-in-a-generation transition in health care.”
According to the message, “the corporation is reducing its usage of consultants and vendors as well as its travel expenditures. It also involves halting certain company endeavors and boosting productivity using technology. The impacted employees will be given benefits, severance money, and assistance in finding new employment.”
The announcement of the layoffs coincides with the impending release of CVS’s quarterly earnings report.
According to WPRI, CVS Health Executive Director of Corporate Communications Mike Deangelis said, “We are dedicated to supporting our impacted coworkers, and those affected will be provided with severance benefits and pay, which includes access to outplacement services.”
Despite frequent warnings of a recession, there haven’t been many layoffs in the United States. According to the Department of Labor’s report this week, there were almost 1.5 million layoffs and discharges in June. According to historical norms, that amount is modest. Just before the epidemic began in February 2020, there were 1.8 million layoffs.
In addition, Breitbart News reported that job opportunities were almost unchanged at the end of June compared to May, calling it “a sign that the labor market continues to remain tight.”
According to the article, “The Dept. of Labor said that job openings totaled 9.6 million on the final day of June, exactly where they had been in the downwardly revised number for the end of May.”
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