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CVS Health will lay off 416 employees at Aetna's headquarters in Hartford, Conn.
In a WARN notice filed Oct. 6, the company said 93 employees work at the facility in Hartford. The other employees work remotely in several states and report to the facility.
Most of the layoffs are effective Dec. 7.
In September, CVS Health announced it would lay off 2,900 employees, less than 1% of its workforce, primarily in corporate roles. The layoffs are part of an initiative to cut $2 billion in costs at the company.
"Before taking this step, we prioritized finding cost savings everywhere we could, including closing open job postings," a CVS Health spokesperson said in a statement shared with Becker's. "Decisions on which positions to eliminate were extremely difficult and do not diminish the value that impacted colleagues have brought to the company."
CVS is also laying off 632 employees who report to its corporate headquarters in Woonsocket, R.I., according to a WARN notice filed with the state.
The layoffs come amid a difficult year for CVS. Shares in the company have fallen 24% in 2024, according to The Wall Street Journal.
CVS has cut its earnings guidance multiple times during the year. The cuts were mainly driven by rising costs in Aetna's Medicare Advantage business. The company anticipates it could lose up to 10% of its MA membership in 2025.
CVS executives are considering breaking up the company, splitting its retail and insurance business, according to the Journal. CVS has retained bankers for a strategic review of the company.
CVS spent $69 billion to acquire Aetna in 2018.
Affected positions at Aetna include a senior vice president and two vice presidents, according to the WARN notice.
Most affected employees were notified of the layoffs last week, a CVS spokesperson said. Employees will receive severance pay and benefits.
"We remain focused on our mission – continuing to provide the exceptional care and support our patients, members, clients and customers deserve and depend on," the spokesperson said.
CVS laid off 600 Aetna employees in 2023.
In a WARN notice filed Oct. 6, the company said 93 employees work at the facility in Hartford. The other employees work remotely in several states and report to the facility.
Most of the layoffs are effective Dec. 7.
In September, CVS Health announced it would lay off 2,900 employees, less than 1% of its workforce, primarily in corporate roles. The layoffs are part of an initiative to cut $2 billion in costs at the company.
"Before taking this step, we prioritized finding cost savings everywhere we could, including closing open job postings," a CVS Health spokesperson said in a statement shared with Becker's. "Decisions on which positions to eliminate were extremely difficult and do not diminish the value that impacted colleagues have brought to the company."
CVS is also laying off 632 employees who report to its corporate headquarters in Woonsocket, R.I., according to a WARN notice filed with the state.
The layoffs come amid a difficult year for CVS. Shares in the company have fallen 24% in 2024, according to The Wall Street Journal.
CVS has cut its earnings guidance multiple times during the year. The cuts were mainly driven by rising costs in Aetna's Medicare Advantage business. The company anticipates it could lose up to 10% of its MA membership in 2025.
CVS executives are considering breaking up the company, splitting its retail and insurance business, according to the Journal. CVS has retained bankers for a strategic review of the company.
CVS spent $69 billion to acquire Aetna in 2018.
Affected positions at Aetna include a senior vice president and two vice presidents, according to the WARN notice.
Most affected employees were notified of the layoffs last week, a CVS spokesperson said. Employees will receive severance pay and benefits.
"We remain focused on our mission – continuing to provide the exceptional care and support our patients, members, clients and customers deserve and depend on," the spokesperson said.
CVS laid off 600 Aetna employees in 2023.
These absolutely useless commie career politicians have never met a business they didn't want to absolutely destroy.
