CVS Health disclosed plans to lay off another 90 employees in New Jersey early next year, adding to the previously announced 207 positions statewide that are being eliminated.
In its most recent filing with the state Department of Labor and Workforce Development, the Woonsocket, R.I.-based health care giant said the new cuts would take effect Jan. 27, 2024, at various unspecified locations.
The first round of cuts – which was disclosed about two months ago – are slated to occur between Nov. 15 and Dec. 31.
In a statement to NJBIZ, Mike DeAngelis, executive director, CVS corporate communications, said, “The additional notice is related to the 5,000 non-customer facing positions from our corporate offices that we announced in August would be eliminated this year. We’re remain committed to supporting impacted colleagues, and they will receive severance pay and benefits, including access to outplacement services.”
He continued, “Our industry is evolving to adapt to new consumer health needs and expectations. As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses. We do not anticipate there will be any impact to our clients and customers as we remain 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. The difficult decision we are making will set the company up for long-term success.”
One of the largest health care companies in the U.S., CVS operates health care insurance provider Aetna Inc. and pharmacy benefits manager CVS Caremark as well as 9,000 retail locations and 1,100 walk-in clinics nationwide.
When it announced plans in August to begin a larger restructuring effort, the company said it would terminate 5,000 of its 300,000 workers in the U.S. as part of a move to trim between $700 million and $800 million in costs for 2024. The workforce reduction – which impacts at least eight states – is primarily focused on corporate positions in regional offices and will not effect “customer facing jobs” at stores, pharmacies, clinics and customer service centers, CVS has said.
This past spring, CVS completed two acquisitions – of home care provider Signify Health for $10.6 billion and value-based medical chain Oak Street Health for $8 billion – as part of its mission to advance a “value-based care strategy.”
CVS plans to terminate certain business initiatives as part of its plan to reallocate resources to growth areas such as health care delivery technology. The company has also closed its fledging clinical trials business and continues to scale back its retail drugstore footprint.
Editor’s note: This story was updated at 4:52 p.m. ET Nov. 2, 2023, to include a statement from CVS.
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