Retail pharmacy giant CVS announced on Monday that it is cutting around 5,000 jobs in an effort to reduce costs.
According to a staff memo reviewed by the Wall Street Journal, Chief Executive Karen Lynch said the layoffs would allow the retailer to “be at the forefront of a once-in-a-generation transformation in health care.”
The cuts will primarily impact corporate roles, the company said, adding it doesn’t expect layoffs among customer-oriented positions at clinics, pharmacies and stores.
As of the end of 2022, the Road Island-based company employed more than 300,000 workers, with most working in the United States.
CVS has over 9,000 retail locations across the U.S., as well as 1,100 walk-in clinics.
“Throughout our company’s history, we’ve continuously adapted to market dynamics to lead the industry. The difficult decision we are making will set the company up for long-term success,” CVS said, according to CNN.
One of America’s largest trucking companies, Yellow, was forced to shut down operations over the weekend, bringing to a halt 12,000 trucks. The devastating failure eliminated 30,000 jobs, including tens of thousands of Teamsters members.
The Nashville, Tennessee-based company, which ships freight for companies like Walmart, Home Depot and others, notified its customers and employees that all operations would stop Sunday afternoon.
Shipping disruptions should be limited because many customers shifted their business to rival trucking companies, the Journal reported.
“It’s an incredibly sad situation because there’s the potential that this company that was about to celebrate its 100-year anniversary next year may not be around,” said Yellow board member Chris Sultemeier.
Yellow’s financial troubles intensified this year amid a sharp decline in shipping demand. The company’s cash holdings dropped to roughly $100 million last month from $235 million in December.
