CVS Health, the parent company of Hartford health insurer Aetna, said it will lay off 5,000 workers in a cost-cutting move, the Wall Street Journal reported late Monday.
The retail pharmacy chain plans to reduce costs as it “sharpens its focus on healthcare services,” according to the WSJ.
The reductions will primarily affect corporate staff, according to a statement from the company. It’s unclear whether there will be any impact on Aetna.
On Tuesday morning, a CVS spokesman said the company didn’t have a regional breakout of job impacts to share, but the “decision applies nationally across the company.” CVS employs more than 300,000 people in the United States.
CVS, which has its corporate headquarters in Woonsocket, Rhode Island, purchased Aetna in November 2018 in a deal valued at $69 billion.
To win over state regulators who could have blocked or at least held up the merger, CVS pledged to keep Aetna anchored in Hartford for at least a decade and retain staffing levels of roughly 5,300 employees for at least the following four years.
The company also announced local layoffs in 2020.
Aetna is the healthcare benefits arm of CVS that provides benefits and insurance to employers, individuals and government entities. It serves nearly 35 million people.
In the statement, CVS said it is “evolving to adapt to new consumer health needs and expectations” and that it “must take difficult steps to reduce expenses.”
No impact on customer-facing employees in stores, pharmacies, clinics or customer service centers is expected, the company said.
CVS’ quarterly earnings report is set for Wednesday morning.
