CVS is laying off another 160 workers at Aetna

CVS is laying off another 160 workers at Aetna

HARTFORD, Conn. (AP) — CVS Health has informed Connecticut state officials that it will lay off 164 employees of Hartford-based health insurer Aetna, which has struggled financially this year due to unexpectedly high medical costs.

CVS, based in Woonsocket, Rhode Island, said it will lay off those workers for a 14-day period beginning Feb. 15. The positions that will be eliminated include clinical case managers, field sales representatives, sales administration managers and care management associates.

This latest round of layoffs comes as CVS has been working to reduce its workforce in recent months. In late September, CVS said it would lay off about 2,900 employees as investors pressured it to cut costs and improve financial performance. The layoffs are part of a $2 billion cost-cutting plan.

The company discontinued some of its infusion services and announced plans to close or sell 29 pharmacies. Approximately 630 jobs reporting to CVS headquarters in Rhode Island were also eliminated.

The leadership of CVS also underwent a renewal: the company replaced the previous leadership She was taken over by CEO Karen Lynch in October, abruptly ending a tumultuous tenure in which she struggled to combine her retail pharmacies and other businesses into a one-stop health care company. Lynch was succeeded by David Joyner, head of CVS’s Caremark Pharmacy Benefit Management division.

Aetna has already cut more than 400 employees since October.

This latest round of layoffs at Aetna affects workers across the country, including in Connecticut, according to a Worker Adjustment and Retraining Notification Letter sent to the Connecticut Department of Labor.

In a statement sent to the Hartford Business Journal, a CVS spokesperson said these layoffs were part of 2,900 job cuts announced in September and that some positions were impacted by the unexpected loss of a contract with Kansas-based Aetna Better Health. The spokesman said only three Connecticut-based workers will lose their jobs.

“We are committed to supporting these colleagues who will receive severance pay and benefits, including access to outplacement services,” the spokesperson said.

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