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51 A pistillate walks past a CVS Pharmacy successful Washington, DC, connected November 2, 2022.
Brendan Smialowski | AFP | Getty Images
CVS Health is cutting 5,000 jobs to reduce costs arsenic the retail pharmacy elephantine furthers its propulsion into health attraction offerings, a idiosyncratic acquainted with the substance told CNBC connected Tuesday.
The pharmacy concatenation had astir 300,000 employees successful the U.S. astatine the extremity of past year, according to a securities filing.
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A CVS spokesperson confirmed the layoffs and said they are not expected to interaction "customer-facing colleagues successful our stores, pharmacies, clinics, oregon lawsuit services centers." The spokesperson added that employees laid disconnected volition person severance wage and benefits, including entree to outplacement services.
"As portion of an endeavor inaugural to reprioritize our investments astir attraction transportation and technology, we indispensable instrumentality hard steps to trim expenses," the spokesperson said successful a connection to CNBC. "This unluckily includes the request to destruct a fig of non-customer facing positions crossed the company."
The Wall Street Journal archetypal reported the occupation cuts Tuesday, citing an interior announcement to employees. It comes a time earlier CVS reports its second-quarter earnings.
Rhode Island-based CVS operates much than 9,000 retail locations and 1,100 walk-in clinics nationwide. The institution owns 1 of the nation's largest wellness insurers and the biggest pharmacy payment manager, which negotiates cause discounts with manufacturers connected behalf of wellness insurers.
But CVS has sharpened its absorption connected wellness attraction implicit the past fewer years, pursuing akin moves by rivals similar Walgreens and tech elephantine Amazon.
The institution moved deeper into diligent attraction with its astir $8 cardinal acquisition of wellness attraction supplier Signify Health and $10.6 cardinal woody to bargain Oak Street Health, which operates superior attraction clinics for the elderly.
CVS chopped its yearly net forecast past quarter, citing the outgo of those deals.
