CVS Health to cut 5,000 jobs

CVS Health is eliminating thousands of "non-customer facing positions" across the company, a spokesperson confirmed with Becker's

The Woonsocket, R.I.-based company is eliminating jobs as "part of an enterprise initiative to reprioritize our investments around care delivery and technology." Five thousand jobs are affected, according to The Wall Street Journal.

The company did not specify the number of vacant jobs that will be eliminated and employees who will be laid off, but a spokesperson did note that no changes are expected to affect "customer-facing colleagues in CVS stores, pharmacies, clinics or customer services centers." Affected employees will be notified in coming weeks. 

CVS Health noted it is reducing expenses, which is in line with its plans to slow its acquisitions and wind down clinical trials. 

CVS Health said in May it will not pursue any major acquisitions in the near future following its recent purchases of Dallas-based Signify Health and Chicago-based Oak Street Health. The company also told Becker's it was wrapping up its clinical trials unit that launched two years ago to focus on its core business and "long-term strategic priorities." The company aims to sunset the clinical trials unit in phases, with a full exit expected by the end of 2024. 

CVS Health closed on its acquisition of in-home care company Signify Health for $7.8 billion in March, adding more than 10,000 clinicians to its network. It closed on its $10.6 billion acquisition of Medicare-focused Oak Street Health in May, adding more than 170 medical centers across 21 states to its network.

In the first quarter of 2023, CVS Health reported $2.1 billion in profit and surpassed 25 million members through its insurance arm, Aetna. 

CVS Health is scheduled to report second quarter results on Aug. 2.

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