HARTFORD, Conn. — CVS Health said Monday that they are planning to lay off 2,900 employees nationwide, including Hartford-based health insurer Aetna, saying they'll be able to share more detail on the impact in Connecticut after the corporation files official notice with the Department of Labor, which should be next week.
In a statement, CVS spokesperson Mike DeAngelis said the company is planning on the job cuts as part of a plan to increase cost savings by $2 billion over the next several years through "reducing expenses and investing in technologies to enhance how we work."
The company previously noted that those technologies included more "artificial intelligence and automation."
"To achieve this goal and position for sustainable growth, we will reduce our workforce by less than 1 percent- approximately 2,900 colleagues across CVS Health," DeAngelis said. "Impacted positions are primarily corporate roles. The reductions will not impact front-line jobs in our stores, pharmacies, and distribution centers."
DeAngelis added that the company made "extremely difficult" decisions on positions to eliminate, and intends to support workers with severance pay and outplacement services. The vast majority of impacted colleagues will be notified this week.
More information about the job impact on Connecticut will be made available likely next week.
State Senator Tony Hwang, ranking senator on the Insurance and Real Estate Committee, released a statement in response to the layoffs, noting that Aetna's headquarters in Hartford will likely be affected.
“They’re focused on cost savings as it relates to Wall Street’s bottom line and we just had a rate hearing discussion in which Aetna and many of our insurers have raised rates on small businesses and individuals. Where is the consideration and respect for cost savings to rate payers?" Hwang told FOX61. “It comes on the heels of job cuts that occurred last year in 2023 and I don’t believe in coincidences but it ended after the four-year moratorium in which the legislature and state government agreed to the merger between CVS and Aetna in not having any layoffs in a four year period.”
In August, the company cut their profit expectations as Aetna President Brian Kane was let go after less than a year on the job. CVS' CEO Karen Lynch, who said leadership changes were necessary to move forward, has taken over with the chief financial officer.
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