CVS Health Corp. said it would cut about 5,000 jobs to help reduce costs, with most of the roles corporate positions, the Wall Street Journal reported.
The Rhode Island-based pharmacy chain doesn’t expect customer-oriented roles in its stores, pharmacies and clinics to be affected, the newspaper reported, citing a company statement.
The cuts will let CVS “be at the forefront of a once-in-a-generation transformation in health care,” Chief Executive Officer Karen Lynch said, according to a staff memo the newspaper said it had reviewed. Employees impacted are to receive severance pay, benefits and help with getting a new job elsewhere, it said.
CVS leaders were among executives from major drug and retail chains who met with US health officials at the White House last month, as the Biden administration asked them to counter opposition from the pharmaceutical industry and help promote a law intended to lower drug costs.
