August 2, 2023 – According to a report by ABC News, CVS Health is laying off 5,000 employees to save on costs. This move to cut employees comes as CVS is shifting towards expanding healthcare services, after recently acquiring Oak Street Health and Signify Health.
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.
CVS told ABC News, “Our industry is evolving to adapt to new consumer health needs and expectations. As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses.”
These layoffs will mostly affect “non-customer facing positions” like roles at the corporate level. CVS said it does not expect the move to impact brick-and-mortar stores, pharmacies, and clinics.