CVS Health Announces Layoffs Amid Cost-Cutting Measures

CVS Health announced the layoff of approximately 2,900 employees, constituting less than 1% of its total workforce. These layoffs primarily target corporate positions rather than frontline roles in stores, pharmacies, and distribution centers.

This move is part of the healthcare giant’s previously announced initiative to streamline operations and reduce costs by $2 billion through enhanced efficiency measures, including adopting artificial intelligence and automation.

Separately, Glenview Capital Management, a healthcare-focused investment firm holding less than 1% of CVS’s outstanding shares, is engaged in discussions with the company. Glenview has expressed that CVS is operating below its potential and needs to catch up in its investment and actuarial approaches. The firm advocates for operational enhancements but is not pushing for a company breakup.

Additionally, Reuters reported that CVS is exploring options to improve market performance, including separating its retail and insurance businesses.

Read the full article on Reuters.