U.S.-based retail giant CVS Health is laying off 5,000 employees in a cost-cutting move as it shifts focus to health care services.
CVS Changes Its Focus and Lays Off Workers
The Wall Street Journal reported Monday that Woonsocket, Rhode Island-based CVS layoffs will primarily affect employees who work in the corporate sector of the company.
CVS Health said that the new layoffs would not affect company store positions.
In a memo sent to employees, CEO Karen Lynch said the changes would enable CVS to be “at the forefront of a once-in-a-generation transformation in health care.”
According to executives, the employees most affected by the cuts will primarily work in corporate positions. The company does not expect customer-oriented roles in individual pharmacies, clinics, or stores to be part of this plan.
The memo said that employees will find out if they are expected to lose their job in the coming weeks, and those who are laid off will receive a severance package.
The cuts will also include trimming expenses tied to travel use, consultants, and vendors
CVS employs about 300,000 people company-wide.
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