CVS announces at least 5,000 job losses as CEO says it's adapting to consumer 'health needs'

CVS has sent letters to thousands of employees warning that a spate of job cuts is coming to the pharmacy giant.

The chain pharmacy brand told corporate employees that nearly 5,000 jobs would be lost as the company looked to reduce ballooning costs.

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The sent a memo to corporate employees warning that several jobs are on the chopping block, according to 12 News.

"The decisions on which positions to eliminate were extremely difficult, but they were made with care and consideration," Karen Lynch, CVS' CEO wrote in the memo according to the publication.

"We will do everything we can to support those affected."

The 5,000 jobs cuts are expected to include full-time, non-customer-facing jobs throughout the company.

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In-store, customer-facing employees will not be impacted by the job cuts.

Customer service reps in CVS make $15.35 per hour, according to Zip Recruiter.

Lynch wrote that the layoffs reflect CVS' evolution "to adapt to new consumer health needs and expectations."

CVS didn't immediately respond to The U.S. Sun's request for comments.

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CVS HEADING FORWARD

The pharmacy change has announced changes across the brand as the company faces headwinds in the healthcare market.

By 2022's end, the company employed 300,000 people.

Nearly three-fourths of the jobs were full-time, according to SEC filings.

In May, CVS bought Oak Street Health, an elderly-focused primary care provider, for around $10.6billion.

The company said in the second quarter earnings that the integration of Oak Street Health will continue to cost the company.

In response, CVS is cutting back $496million in spending to balance the budget.

The company said it would save between $700million to $800million over the long-term without the 5,000 staffers.

CVS closures

The job cuts come after CVS closed several stores throughout the US.

In late 2021, CVS announced its "retail footprint strategy," including plans to close roughly 300 stores annually through 2024.

A corporate spokesperson told The U.S. Sun at the time it weighs multiple factors when shutting down a store locations, including "maintaining access to pharmacy services."

"Other factors include local market dynamics, population shifts, a community’s store density, and ensuring there are other geographic access points to meet the needs of the community, including COVID-19 testing and vaccinations," the company said.

Other CVS locations closed this year, including:

• Euclid Avenue, Des Moines, Iowa
• Monroe Street, Tallahassee, Florida
• Troost Avenue, Kansas City, Missouri
• College Point, Queens, New York
• The Woodlands, Houston, Texas
• Willard Way, Fairfax, Virginia
• Brookfield, Illinois

The U.S. Sun reports on other store changes - here is a major change CVS made in-store.

Also, here is how to avoid a CVS surcharge.