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WOONSOCKET, R.I. — According to published reports, CVS Health has notified Rhode Island regulators it plans to lay off 632 in-person and remote workers employed out of the company’s headquarters starting on Dec. 8.
The pharmacy giant outlined the layoffs in a federally mandated lay off notice filed with the R.I. Department of Labor and Training on Monday.
Of the 632 people who will be let go across the company, 153 of them live or work in Rhode Island, including Rhode Island-based remote workers. The remaining 479 affected employees are outstationed/remote employees reporting into the facility.
"These are not additional cuts; they are part of the previously announced reduction in workforce, which was communicated last week. Additionally, while the RI notice indicates that a total of 632 positions are impacted, only 153 of those positions are from our Woonsocket, RI headquarters and surrounding facilities. The overall count includes people who live in other states or work remotely but report to someone who is located in Rhode Island," said Kara Page, manager, Corporate Communications, CVS Health.
Among the places remote workers being laid off include Texas, New Jersey, Oklahoma, Tennessee, Massachusetts, Ohio, Connecticut and California.
CVS announced on Sept. 30 it planned to let go of nearly 2,900 workers nationwide as it looks to cut $2 billion in expenses amid disappointing financial results. The company’s board is also reportedly exploring whether to break up CVS into separate entities.
"Our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations, so it is critical that we remain competitive and operate at peak performance. As we previously disclosed, we’ve embarked on a multi-year initiative to deliver $2 billion in cost savings by reducing expenses and investing in technologies to enhance how we work," said David Whitrap, vice president of external affairs at CVS Health.
"To achieve this goal and position ourselves for sustainable growth, we will reduce our workforce by less than 1 percent (roughly 2,900 jobs). Impacted positions are primarily corporate roles; the reductions will not impact front-line jobs in our stores, pharmacies, and distribution centers.
"Before taking this step, we prioritized finding cost saving everywhere we could, including closing open job postings. Decisions on which positions to eliminate were extremely difficult and do not diminish the value that impacted colleagues have brought to the company.
We are committed to supporting these colleagues, who will receive severance pay and benefits, including access to outplacement services. The vast majority of impacted colleagues will be notified last week. We remain focused on our mission – continuing to provide the exceptional care and support our patients, members, clients and customers deserve and depend on," Whitrap added.
