CVS Health, a major US healthcare provider, is preparing to cut 5,000 corporate sector jobs in an effort to reduce costs and refocus on healthcare services.

The affected employees, mainly working in corporate roles, will be offered severance pay, benefits, and support for securing future employment. This decision is part of a broader restructuring plan, including reducing travel expenses, lessening the reliance on consultants and vendors, and terminating specific business initiatives. Meanwhile, customer-facing roles in CVS stores, pharmacies, and clinics will remain unaffected.

CVS Health’s spokesperson addressed the changes, saying, “Our industry is evolving to adapt to new consumer health needs and expectations. As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses.” They further assured that there would be minimal impact on clients and customers, saying, “We do not anticipate there will be any impact to our clients and customers as we remain focused on our mission — continuing to provide the exceptional care and support our customers, patients and communities deserve and depend on.”

The layoff announcement comes just before the company’s quarterly earnings report and on the heels of the closure of 900 chain stores in 2021. CVS Health, currently employing around 300,000 people, believes that these measures will secure the company’s future, with the spokesperson noting, “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.”