CVS Health said second quarter profits dropped 37% to $1.9 billion due largely to costs from restructuring and acquisitions made this year.

The drugstore and health insurance giant Wednesday reported net income of $1.9 billion or $1.48 a share compared to $3.03 billion or $2.29 cents in the year-ago quarter. CVS sales jumped 10% to $88.9 billion in the company’s second quarter.

“During the second quarter of 2023, the company developed an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and reduce costs,” CVS said Wednesday in its second quarter earnings report. “In connection with the development of this plan and the recently completed acquisitions of Signify Health and Oak Street Health, the Company also conducted a strategic review of its various transformation initiatives and determined that it would terminate certain initiatives. In connection with the restructuring plan, during the three months ended June 30, 2023, the Company recorded a $496 million pre-tax restructuring charge.”

CVS also plans to shed 5,000 jobs across the country comes in the wake of the retail drugstore giant’s billions of dollars in spending to add healthcare services to its stores and medical care provider networks. In a statement earlier this week, CVS said the company and the industry are “evolving to adapt to new consumer health needs and expectations.”

Still, CVS executives said the company is performing well and making changes to ensure growth into the future.

“Our diversified business model delivered strong results this quarter,” CVS chief executive Karen S. Lynch said. “We continue to execute on our strategy to expand access to health services across our care delivery channels and strengthen our engagement with consumers to improve their health and well-being.”

To be sure, total revenues in CVS’ health care benefits segment jumped 17.6% in the second quarter to $26.7 billion “driven by growth across all product lines,” the company said.