CVS Health is undergoing another round of significant cutbacks, laying off 2,900 employees nationwide as part of a $2 billion cost-saving initiative. The pharmacy giant, which also owns Aetna and Caremark, cited “continued disruption, regulatory pressures, and evolving consumer needs” as reasons for the layoffs, according to spokesperson Mike DeAngelis. He stressed that the cuts will primarily affect corporate roles, sparing frontline employees in retail stores, pharmacies, and distribution centers.

DeAngelis explained that the decision to reduce the workforce was difficult but necessary to ensure CVS remains competitive and can invest in new technologies that improve efficiency and workflow. “It is critical that we remain competitive and operate at peak performance,” he stated, emphasizing that the layoffs account for about 1% of CVS’s overall workforce.

The announcement follows recent reports that CVS’s board is exploring whether to break up the company, which owns several major healthcare subsidiaries. CVS has faced mounting business challenges in recent years, prompting cost-cutting measures. DeAngelis added that before resorting to layoffs, the company prioritized finding savings in other areas, such as closing open job postings.

The layoffs, which will affect employees across the country, will be followed by CVS filing a Worker Adjustment and Retraining Notification (WARN) notice with Rhode Island, as required when companies plan large-scale layoffs. The WARN Act mandates that employers of over 100 full-time workers must notify the state 60 days in advance of significant layoffs, which include shutting down facilities or letting go of at least 50 workers.

While the layoffs are happening nationwide, DeAngelis did not disclose how many employees in CVS’s home state of Rhode Island will be affected. However, a formal layoff notice will be filed soon. The company remains committed to helping impacted employees by providing severance pay, benefits, and access to outplacement services.

CVS Health previously eliminated 5,000 jobs last year as part of its efforts to manage costs. The latest round of layoffs reflects the company’s ongoing challenges and its attempts to balance operational efficiency with evolving market demands. Despite the job cuts, CVS continues to focus on providing high-quality care to its patients, clients, and customers, according to DeAngelis.

As CVS adjusts to a shifting healthcare landscape, the long-term impact of these decisions on the company’s future remains to be seen.