“To help turn things around, CVS said it will initiate a “a multi-year expense management opportunity to deliver $2 billion in savings” that will include “streamlining and optimizing operations and processes.”
How will it happen?
Workforce Reduction 25,000 (Layoff 25,000 with $80,000 salaries) will save $2B. This plan was in the works since last year and start the execution from Fall 2024 until Fall 2026.
I think there's no way the $2 bil, is only headcount reduction. Real estate ain't cheap these days. I'm sure a reduction in their overall footprint could be in the mix as well. Remember hard decisions sometimes includes physical locations too.
And, @ukh+1tUFk03P Well said. Layoffs sound bad. Eliminating redundancies sounds all "corporate speak" for cost cutting to improve bottom line and Wall St likes to hear that.
If you were not around last year when layoffs occurred, I can assure you these people are being sane. Warn notices weren’t filed until after everyone who was being laid off was notified.
“Redundancies” = layoffs. I would imagine that includes many of the roles we still have in the states that have been outsourced. Last year, Ly--h said “we have to make hard decisions” this year she’s using eliminating redundancies. You will NEVER hear her come out and say the word “Layoffs”.
On a saner note are there any warn notices filed by CVS or is this just speculation and scare talk?
I know 75% of my team is Accenture. This has me concerned cuz we can’t lay off Accenture folks .. hope I still have a job when I return on Monday from PTO
Karen confirmed duplicate roles will be reduced.
@nij+1tUFk03P remember those Heart at Work workshop things everyone got invited to right before the last mass layoff?
Remember that "heart at work" bullsh-t when you're being layed off so Karen can collect her $20 mil
People are done with this place, Karen has lost credibility and respect. She has fu---d this place up beyond repair.
On another thread someone stated around 7,000, close to forecast below. But, I’m sorry that’s still A LOT! When 5,000 last year was painful.
The $2B is over 3 years or $666M per year. Figure $100K loaded salaries and your layoff headcount is only 6,666 people. Keep in mind though there are costs associated with the layoffs that erode some number higher than $2B to get that savings. So the headcount is somewhere north of 6,666 but definitely not 25K.
They could save a big portion of that by putting those high dollar dream initiatives on the back burner and improving what works.
Aetna can't afford that type of loss. We've been hit several times already. Work can't be 100% outsourced we need people with actual knowledge of systems and policies
Keep your fingers crossed for 08/12
@qel+1tUFk03P You’re not wrong. Karen wants to make significant cuts to save money. I saw a post that mentioned that there will be 7,000 layoffs in mid August, with a majority of them coming from Aetna. It sounds like someone either has inside info or has a side gig as a fortune teller.
@xhy+1tUFk03P AI is not ready for primetime, and may never be. It is a lot like any other specialized tool, without someone intelligent to pilot it and keep its tendencies in check, you end up with a mess.
She's just making up numbers now...where are they going to get $2 billion? Probably the same people who said oak street was worth 10 billion...what a joke
AI is a gimmick, it is no where near ready to replace that many jobs. You would need that many people to make AI work.
CVS is understaffed as it is, even in the back office. 25000 seems high. but who knows. we live in an age where a company makes 1.8 billion in profit in a quarter and that’s not enough and they are willing to sacrifice more workers and institutional knowledge to chase the dollar. they did layoffs last year and it was a mess and the stocks still went down. The CEO is incompetent she needs to step down.
AI is the new Omnichannel, i.e. the promise of a technology that will never quite deliver. They will burn a lot of money trying.
AI is the hot topic. How will the company say they work with heart when there's no heart in AI? People want a human connection. Not going to get that with a bot.
25,000 seems a little far fetched. In my area, executives want AI to take over most processes. If they find a way to fully implement this plan, then that number doesn’t seem too far out of reach.