According to reports, CVS Health will be cutting 2,900 jobs across the U.S. as part of its new plan to save $2 billion.
When asked about the layoffs, a CVS Health spokesperson said to FOX Business that most of them would be in corporate jobs, but not all of them would be in corporate roles.
“The company added that employees whose jobs are being cut will receive retirement pay and perks, such as access to outplacement services,” according to CBS News.
On its website, CVS says that it employs over 300,000 people across all of its business groups. This means that the layoffs only affect 1% of their staff.
A representative for CVS said that the cuts would not affect front-line work in stores, pharmacies, and distribution centers.
“Our business is constantly changing because of new regulations, changing consumer wants and expectations, and so on. It is very important that we stay competitive and run at our best. As we said before, we’ve started a multi-year plan to save $2 billion in costs by cutting costs and investing in tools that will make our work better,” the source told FOX Business.
The company said that before choosing to lay off workers, CVS “prioritized finding cost savings anywhere we could, including closing open job ads.”
In August, Karen Lynch, CEO of CVS Health, said that the company would save money by “further optimizing our processes, continuing to work on our business, and growing the use of AI and automation across the company as we consolidate and integrate platforms.”
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