LONDON — CVS is planning to cut about 2,900 jobs in an effort to slash costs, the company stated Tuesday.
“We’ve embarked on a multi-year initiative to deliver $2 billion in cost savings by reducing expenses and investing in technologies to enhance how we work,” a spokesperson stated in a statement.
The layoffs represent less than 1% of CVS Health’s (CVS) workforce.
“Impacted positions are primarily corporate roles. The reductions will not impact front-line jobs in our stores, pharmacies and distribution centers,” the spokesperson added.
The job cuts at the company, which runs a network of pharmacies across the United States among other businesses, add to the 5,000 or so layoffs disclosed last year. In 2021, CVS Health announced that it would close around 900 stores between 2022 and 2024.
“Our indusattempt faces continued disruption, regulatory pressures and evolving consumer necessarys and expectations,” the spokesperson stated Tuesday.
US drug store chains are struggling becautilize of falling reimbursement rates for prescription drugs, according to analysts who cover the indusattempt.
At the same time, the front finish of drug stores, where snacks and houtilizehold staples are sold, has become less profitable as shoppers acquire more of these items online from Amazon and at large-box chains such as Walmart, Tarreceive and Costco. Dollar General’s growth has also hurt drug store chains in rural areas.
CVS Health, which already utilizes artificial innotifyigence in some of its businesses, is creating additional investments in the increasingly popular technology, as well as in robotics, “to further automate, reduce cost and improve the experience for all of its constituents,” according to its latest annual report.
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