London CNN —
U.S. healthcare company CVS Health said Tuesday it plans to cut about 2,900 jobs to cut costs.
“We have embarked on a multi-year effort to realize $2 billion in cost savings by reducing expenses and investing in technology that enhances the way we work,” a spokesperson said in a statement.
Less than 1% of CVS Health’s (CVS) employees will be laid off.
“The positions affected are primarily corporate roles. These reductions will not impact front-line jobs in our stores, pharmacies or distribution centers,” the spokesperson added.
The job cuts at the company, which operates a network of pharmacies across the United States, add to the roughly 5,000 layoffs announced last year. In 2021, CVS Health announced it would close approximately 900 stores between 2022 and 2024.
“Our industry faces continued disruption, regulatory pressure and evolving consumer needs and expectations,” a spokesperson said on Tuesday.
U.S. drugstore chains are struggling due to declining reimbursement rates for prescription drugs, according to industry analysts.
At the same time, drugstore front ends that sell snacks and household staples have become less profitable as shoppers increasingly buy these items online at big chains like Amazon, Walmart, Target, and Costco. are. Dollar General’s growth is also hurting local drugstore chains.
CVS Health already uses artificial intelligence in some parts of its business, but it is expanding its popularity beyond just robotics “to further automate, reduce costs and improve the experience for all constituents.” The company said it is also making additional investments in emerging technologies. Latest annual report.
