FinLogic FinLogic Quantitative Think Tank Center|CVS to lay off 5,000 employees as it slashes costs

CVS is laying off about 5,000 workers in a move to cut costs, the pharmacy chain said Tuesday.

The cuts will affect "non-customer facing positions across the company," CVS said in a statement, adding, "We do not expect there to be any impact to our customer-facing colleagues in our stores, pharmacies clinics, or customer services centers."

"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," said the Rhode Island-based chain.

The company employs about 300,000 people nationwide.

The Wall Street Journal, which first reported the news, said the changes are part of CVS' effort to focus on health services and include a reduction in travel costs and less reliance on pricey consultants. In recent years, the chain has added more primary care offerings and expanded its "HealthHub" store layout.

In 2021, CVS announced it was closing 900 stores, amounting to nearly 10% of its footprint, in response to the changing of "consumer buying patterns."

The company is set to report quarterly earnings on Wednesday.