“The vast majority of affected colleagues will be notified this week,” the CVS spokesperson added.
CVS Health is retiring 2900 people to cut costs, the company announced Tuesday.
“We've launched a multi-year initiative to deliver $2 billion in cost savings by cutting costs and investing in technology to improve the way we work,” a spokesperson said in a statement. for CNN.
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Experts say several factors are causing the industry as a whole to struggle, including online shopping. Consumers are buying toiletries and personal items from Amazon, Walmart and other major online retailers. Meanwhile, big box stores like Costco are cutting back on what were once considered drugstore staples, like toilet paper and snacks.
CNN also reports that Dollar General's growing market is causing slower sales in the drugstore in rural areas. Declining reimbursement rates for prescription drugs is also a big factor.
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“Our industry faces constant disruption, regulatory pressures and evolving consumer needs and expectations,” the spokesperson said. “The cuts will not affect frontline jobs in our stores, pharmacies and distribution centers.”
The layoffs will affect about 1% of CVS's total workforce.
On Monday, the Wall Street Journal reported that CVS has explored the possibility of ruining the company.
reported Reuters that the move would potentially separate its retail and insurance units.