WOONSOCKET, R.I. — CVS Health is planning to cut 5,000 jobs, according to a report Monday in The Wall Street Journal, which cited an internal company memo.
Word of the cost-cutting move, which will reportedly spare workers in customer-facing positions in “stores, pharmacies, clinics, or customer services centers,” came ahead of the scheduled release of the company’s quarterly results on Wednesday.
The report quoted CVS Health chief executive officer Karen Lynch as saying the move would help the company “be at the forefront of a once-in-a-generation transformation in health care.” The memo also said CVS Health plans to reduce travel expenses, cut back on its use of consultants, halt certain business initiatives, and use technology to increase productivity.
CVS Health had more than 300,000 employees at the end of last year, most of them in the United States, where it operates more than 9,000 retail outlets and 1,100 clinics. The company’s Aetna unit is a leading health insurance provider, and its CVS Caremark unit is the nation’s largest pharmacy benefit manager.