CVS Health has notified state and local governments in Rhode Island and Connecticut that they will be laying off around one thousand employees. The layoffs are a continuation of an already announced plan to slash 5,000 positions across the corporation.
CVS, headquartered in Woonsocket, R.I., announced layoffs that affect both on-site employees and those who work remotely but report to the company’s offices in Woonsocket, Cumberland, or Hartford (where the Aetna health insurance subsidiary is situated). The company’s WARN notice states that about 200 of the employees working in Rhode Island locations are actually Rhode Island residents. How many of the terminated workers are from Massachusetts is unclear.
“Our business is changing to meet the rising expectations of health-conscious consumers. The corporation stated, “We must take difficult steps to reduce expenses as part of an enterprise initiative to reprioritize our investments around care delivery and technology.” The company’s future prosperity will be assured by the tough choice we’ve made.
The major layoffs were initially reported this month by CVS. Corporate employees rather than those working directly with customers in retail locations like pharmacies and clinics are expected to be affected by the layoffs, the business said. CVS has over 9,000 locations and over 1,100 walk-in clinics across the United States.
By the close of 2022, CVS Health had over 300,000 employees, most of whom were located in the United States. The corporation is the third largest employer in Rhode Island, with around 8,600 people working for it there.
In a deal worth $69 billion, CVS purchased Aetna in 2018. CVS promised at the time to keep Aetna’s 5,300 Connecticut-based workers on for at least another four years. According to the Hartford Courant, the terms of that arrangement expired on October 1, 2022.