Aug. 2 (UPI) — CVS Health is laying off 5,000 employees in what the company describes as a cost-saving measure, according to a memo from CVS Health CEO Karen Lynch.
The company says the layoffs won’t affect employees at its stores and pharmacies but instead will focus on corporate and “non-customer facing positions.”
In 2021, the company said it would close about 900 locations nationwide.
CVS has increased its focus on healthcare services in recent months, acquiring Signify Health for $8 billion and Oak Street Health for $10.6 billion earlier this year.
“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 our customers, patients and communities deserve and depend on,” CVS said in a statement sent to ABC News.
“The difficult decision we are making will set the company up for long-term success.”
Employees will receive notice of potential layoffs in the next few weeks and the company said affected employees will receive benefits as well as severance pay.
