CVS to slash 5,000 jobs as company deepens costly health-care push

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Rhode Island-based CVS operates more than 9,000 retail locations and 1,100 walk-in clinics nationwide. The company owns one of the nation's largest health insurers and the biggest pharmacy benefit manager.

A CVS spokesperson confirmed the layoffs and said they are not expected to affect"customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers." The spokesperson added that employees laid off will receive severance pay and benefits, including access to outplacement services.Sign up for NECN newsletters.

"As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses," the spokesperson said in a statement to CNBC."This unfortunately includes the need to eliminate a number of non-customer facing positions across the company."the job cuts Tuesday, citing an internal announcement to employees. It comes a day before CVS reports its second-quarter earnings.

Rhode Island-based CVS operates more than 9,000 retail locations and 1,100 walk-in clinics nationwide. The company owns one of the nation's largest health insurers and the biggest pharmacy benefit manager, which negotiates drug discounts with manufacturers on behalf of health insurers.

 

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