CVS Announces Layoffs In 'Difficult Step To Reduce Expenses'

WOONSOCKET, RI — CVS, the pharmacy and retail chain headquartered in Woonsocket, is set to lay off "a number of non-customer facing positions" in an effort to cut costs, the company confirmed to Patch in an email Tuesday morning.

The layoffs are not expected to include employees working in the stores, pharmacies, clinics, or customer service centers, Mike DeAngelis, Executive Director of Corporate Communications for CVS, told Patch.

"Our industry is evolving to adapt to new consumer health needs and expectations," DeAngelis said. "As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses ... We’re committed to supporting impacted colleagues, and they will receive severance pay and benefits, including access to outplacement services."

DeAngelis added that the company remains "focused on our mission – continuing to provide the exceptional care and support our customers, patients and communities deserve and depend on."

"Throughout our company’s history, we’ve continuously adapted to market dynamics to lead the industry," DeAngelis said. "The difficult decision we are making will set the company up for long-term success."

The Wall Street Journal was the first to report that the company was set to slash around 5,000 jobs, according to a company staff memo from Chief Executive Karen Lynch sent Monday.

According to a recent news release from the company, CVS Health employs over 300,000 people. The company operates more than 9,000 retail locations and 1,100 walk-in clinics in the United States.

CVS Health completed two acquisitions this spring—Signify Health in March and Oak Street Health in May—as part of its mission to advance its "value-based care strategy," according to the company.

"This transaction advances our value-based care strategy by enhancing our presence in the home," Lynch wrote in a news release announcing the Signify Health acquisition. "Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected."