Massive Layoffs Planned at CVS Health
In response to changing market conditions CVS health announced it will be laying off 600 headquarters level staff over the next two months. The cuts will applied across HQ staff from entry-level positions on up to top executives.
Despite rising revenue and profit across the organization slightly below expectation results in key financial metrics including front of the store sales and gross profit as a percentage of net revenue has prompted the nation's largest pharmacy chain to look to trim expenses, including staff.
"Following a thorough evaluation process, we have determined that changing market dynamics and the increasingly competitive environment require us to operate as a more lean and efficient organization," Mike DeAngelis, senior communications director, CVS Health said in a statement. "As a result, we are eliminating a small percentage of positions at CVS Health in November and December 2016 in order to focus roles and resources on driving the greatest value for our business while maintaining customer satisfaction."
The cuts will primarily affect corporate offices in Rhode Island, Illinois, and Arizona. The retailer announced that those employees that are losing their jobs are invited to apply for other open positions within the company where appropriate.