CVS Health Corp. has announced plans to eliminate 796 positions nationwide between January 25 and February 7, 2025, as part of its ongoing efforts to reduce costs, according to a report from AM Best.
This latest round of layoffs follows a prior announcement earlier this year, which saw approximately 2,900 employees affected across the United States.
The Rhode Island-based company disclosed that of the 796 impacted roles, 12 are located within the state. The majority of these positions involve remote workers who report to Rhode Island-based managers.
Affected roles include claims analysts, nurse case managers, IT professionals, and benefit verification staff. Employees in 44 states are set to be impacted, with the largest reductions occurring in Florida and California.
These layoffs are part of a multiyear initiative aimed at achieving $2 billion in cost reductions. The affected positions are linked to CVS’s decision to phase out its acute home infusion therapy services and to close infusion pharmacies under its Coram business.
In a statement to AM Best, the company explained that the workforce changes align with previously announced corporate restructuring efforts in October. At that time, the company had highlighted significant adjustments to its corporate operations, which also aimed at streamlining costs.
The announcement comes amid broader organizational shifts at CVS Health. During the third quarter of 2024, the company experienced leadership changes when Karen Lynch transitioned from her role as president and CEO to lead its healthcare benefits division.
The move followed a 39.1% drop in the segment’s operating income during the second quarter of the year.
As CVS Health navigates these changes, the company faces continued challenges in balancing cost efficiencies with service delivery. The layoffs and strategic adjustments are part of efforts to adapt to evolving market conditions and financial pressures.
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