CVS Health announced that the company will undergo layoffs of 2,900 employees to cut costs.
According to a Reuters exclusive, CVS had been exploring options to reduce company costs via headcount initially, including fracturing the retail and pharmaceutical business to sell individually.
The company recently announced a quarterly dividend “of sixty-six and one-half cents ($0.665 cents) per share on the Common Stock of the Corporation. The dividend is payable on November 1, 2024, to holders of record on October 21, 2024.”
CVS is looking at cutting costs
Glenview Capital Management is involved with a household name in pharmacy and healthcare, and according to Reuters, it is engaged in private dialogue to strengthen its operating performance.
The hedge fund is taking forward “constructive conversations” to size down the healthcare provider and is pivotal in the decision to cut these 2,900 employee’s jobs.
This equates to 1% of the nationally known pharmacy brand’s overall workforce. In August of this year, CVS announced a 2 billion dollar cost reduction exercise, hot on the heels of the company’s second quarter 2024 results.
Karen S. Lynch, CVS Health President and CEO’s statement at that time was geared toward the future. Saying, “We have many points of differentiation that position us to win now and into the future. Our innovation is accelerating more transparent pharmacy reimbursement models, increasing the use of biosimilars, and providing better patient outcomes through our connected healthcare delivery assets. Our integrated model and our strategy enable us to execute in a challenging environment and deliver the value our customers demand. We are taking action today to ensure we make the most of our many opportunities, including leadership changes in the Health Care Benefits segment.”
Over 5,000 non-customer-facing roles were removed from the company last year as part of existing $496 million restructuring and cost-reduction measures.
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