CVS Health Corp, the American healthcare giant, has announced that it will be laying off more than 300 corporate employees based in Connecticut. The majority of the job cuts will take place at the Hartford headquarters of Aetna, a subsidiary of CVS. These layoffs are part of CVS’s plan to cut 5,000 jobs nationwide this year.
The job cuts will go into effect on October 21 and come as a setback to the city’s efforts to bring workers back to the office following the pandemic. The layoffs have raised concerns about the future of Aetna’s campus on Farmington Avenue.
Despite the layoffs, CVS will still retain around 9,000 employees in Connecticut. A recent filing with the state of Connecticut revealed planned cuts of 521 positions, but a CVS spokesman clarified that the count for Connecticut is actually 306.
CVS assured that the job cuts will not impact customer-facing colleagues in its stores, pharmacies, clinics, or customer service centers. The layoffs primarily reflect CVS’s effort to become more competitive and invest in healthcare delivery and technology.
This isn’t the first time layoffs have occurred at Aetna this year. There were previous job cuts that affected a small percentage of workers in Hartford. CVS acquired Aetna in 2018 and made promises to maintain employment at Aetna and its subsidiaries for at least four years. Additionally, CVS agreed to keep Aetna’s headquarters in Hartford for a decade and establish a center of excellence for CVS’ insurance business.
The exact number of employees currently working at the Aetna headquarters in Hartford is unclear. CVS employs approximately 300,000 people nationwide, and the job cuts represent around 2% of the company’s entire workforce.
Despite the layoffs, CVS has been expanding its healthcare services and recently acquired Oak Street Health, a primary care provider. However, the job cuts have caused concerns about the region’s ability to absorb the available talent.
Hartford Mayor Luke Bronin has expressed his concern for the families affected by the layoffs and hopes that they can quickly find new positions in the insurance industry in Hartford. The future of Aetna’s campus and the impact on the local job market remain uncertain at this time.