Financial Strategy and Layoffs
plans to lay off about 2,900 employees, primarily in corporate roles, as part of a $2 billion cost-cutting initiative aimed at improving financial performance.
The layoffs represent less than 1% of CVS's workforce, which exceeds 300,000, and will not affect front-line jobs in stores, pharmacies, or distribution centers.
Potential Structural Changes and Industry Challenges
CVS is considering a significant structural change, potentially splitting its pharmacy chain from its insurance business, a move that would reverse its 2017 acquisition of Aetna.
The company faces industry-wide challenges, including rising healthcare costs, regulatory pressures, and competition from online retailers and discount giants, impacting its drugstore and insurance operations.