📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

CVS Health to lay off nearly 2,900 employees in cost-cutting push

Published 10/01/2024, 12:43 PM
Updated 10/01/2024, 04:41 PM
© Reuters. FILE PHOTO: A general view shows a sign of CVS Health Minute Clinic Customer Support Center, at CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023.  REUTERS/Faith Ninivaggi/File Photo
CVS
-

(Reuters) -CVS Health said on Tuesday it would lay off about 2,900 employees, representing less than 1% of its workforce, as the healthcare conglomerate aims to cut costs.

The reductions, part of the company's previously announced plan, would primarily impact corporate roles and not frontline jobs in stores, pharmacies and distribution centers, it said.

Reuters exclusively reported on Monday that CVS is exploring options that could include a break-up of the company to separate its retail and insurance units, as it looks to turn around its fortunes amid pressure from investors.

Healthcare-focused investment firm Glenview Capital Management said on Tuesday it is engaged in private and "constructive conversations" with CVS to strengthen its operating performance.

"The company is operating well below its potential and has fallen short in its investment and actuarial approach in recent years, creating economic losses and volatility that pressures its people, its customers and its shareholders," Glenview said in a statement, adding that it is not pushing for a break-up of CVS.

The hedge fund owns less than 1% of CVS' outstanding shares, according to data compiled by LSEG.

CVS had disclosed a multi-year plan in August to save $2 billion in costs through measures such as streamlining operations and using artificial intelligence and automation across its business.

© Reuters. FILE PHOTO: A general view shows a sign of CVS Health Minute Clinic Customer Support Center, at CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023.  REUTERS/Faith Ninivaggi/File Photo

Last year, the company said it had eliminated about 5,000 non customer-facing roles as a part of its restructuring plan.

CNN, STAT News and other media outlets had reported about the job cuts.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.