CVS Health is planning to lay off around 2,900 employees from various sections of the company, focusing mainly on corporate sectors, as confirmed by Mike DeAngelis, the executive director of corporate communications, in a message to YSL News on Tuesday.

“The industry we are in is undergoing continuous changes, along with regulatory challenges and shifting consumer expectations. Hence, it’s vital for us to stay competitive and perform at our best,” DeAngelis stated in an email to YSL News.

He further mentioned that the organization had “focused on cost-saving measures wherever possible, including shutting down open vacancies” before arriving at this decision. He also assured that the layoffs “won’t affect job roles directly engaged with customers in our pharmacies, stores, and distribution hubs.”

“It was incredibly tough to decide which roles to remove,” DeAngelis expressed, adding that the employees affected by these layoffs would receive severance packages and other benefits. According to DeAngelis, these job cuts amount to less than 1% of the total workforce.

CVS Health’s previous layoffs last year

Last year, CVS Health also cut approximately 5,000 “non customer-facing” positions as part of its cost-reduction strategy.

This round of cuts represented less than 2% of the workforce, which included around 300,000 employees as of the end of 2022.

“Our industry must adapt to new health needs and expectations from consumers. As a key part of our enterprise effort to realign our investments in care delivery and technology, we are compelled to take some challenging steps to minimize our costs,” the firm stated in its communication with YSL News in 2023.

Earlier this year, the company concluded a substantial acquisition of Oak Street Health for $10.6 billion, a company specializing in primary care services for those with Medicare Advantage plans, catering primarily to lower and middle-income individuals.

This acquisition aimed to leverage the federal government’s initiatives to reduce costs while improving healthcare quality for Medicare beneficiaries.

“This partnership with CVS Health will boost our ability to fulfill our mission of enhancing health outcomes, lowering medical expenses, and improving patient experiences, while also ensuring significant value for our investors,” said Oak Street Health CEO Mike Pykosz during the announcement of the deal.