CVSHealth To Lay Off 250 In Rhode Island

Nov 3, 2016

CVSHealth plans to layoff hundreds employees in the company's corporate offices.

Rhode Island-based CVSHealth says it will be laying off hundreds of employees across the country. That includes about 250 positions in Rhode Island.

CVSHealth employs more than 240,000 people across the country. The 600 who will lose their jobs are primarily based in corporate facilities in Rhode Island, Illinois, and Arizona. That leaves more than 7,600 employees in the Ocean State.

In a statement the pharmacy giant says the layoffs follow a “thorough evaluation process” that determined the organization needed to be leaner to compete in the current business environment. The company says people losing their jobs will be given severance and career counseling.

CVS’s financials for the second quarter of this year were not bad. Operating profits increased nearly 4 percent over the same time last year, and cash flow is up. 

Rhode Island Governor Gina Raimondo reacted Thursday to CVS's decision to go ahead with the layoffs. She said the news is disappointing but the company and her administration are taking steps to offset the losses.

“We’re going to do everything we can to find these folks new jobs," Raimondo said. "The company is strong, continues to grow. In fact, there are still hundreds of open positions open at CVS and other jobs. And in fact they’re going to do everything they can to see if they can find these people other positions at CVS."