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CVS Health plans layoffs, reportedly mulls possible breakup

2024-10-02 02:45:04

CVS Health said Monday that it will lay off about 2,900 people amid pressure from investors to cut costs and improve its financial performance. And more dramatic changes could be coming soon.

A spokesperson for the health care giant, which has long been based in Woonsocket, R.I., and operates health insurer Aetna in Hartford, confirmed the cuts, which will primarily fall on corporate roles. Late Monday, news service Reuters reported that the company is considering an even bigger move — splitting its pharmacy chain and its insurance business — though no final decisions have been made.

A spokesperson declined comment to Reuters on a potential breakup, but did confirm the layoffs to the Globe, saying they were part of a $2 billion cost-cutting plan designed to improve the company’s financial performance. The job cuts will be companywide, “not isolated to a single corporate office or state,” the spokesperson said, and amount to less than 1 percent of the company’s headcount.

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