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.
Short but all true, @pny+1tUFk03P. Putting it up for visibility.
The leader who approved the” cheap” Medicare plans left the company months ago- the current leader of Medicare has been in the job only 4 months!
When it comes to Medicare, these aren’t Aetna problems. They are industry problems due to a perfect storm of regulatory pressures and medical utilization. Listen to a competitor earnings call and hear it first hand. Everyone has responded by making reductions in force. CVS is actually the last to take this drastic measure. As far as people who have nothing to do with Aetna being impacted, it’s cyclical in a company that large. When the PBM business su-ks, Aetna employees get cut or don’t get bonuses. It’s all one company, for better or worse. It’s a different part of the company dragging the rest down every year. Also, Medicare plans aren’t cheap and that was never the problem. The problem is managing those members’ medical expenses that continue to rise, which isn’t unique to CVS.
CVS is the most inefficient public company I’ve ever seen, and as a result of that inefficiency, they have thrown people at the problems instead of doing the hard work to fix underlying issues (process, technology, poorly structured vendor contracts, etc.). Just because people are busy and have a lot of work to do doesn’t mean the role is necessary. There are duplicate roles across lines of business and tons of opportunity for economies of scale if properly executed. Being busy doesn’t equal adding value.
Yes they are being all replaced with overseas workers so will CVS any job in America can go and as soon as they are implemented overseas first. Then the fun happens.
I believe, prior to the layoff, there were only about 50,000 Aetna employees. 25,000 layoffs would be a death blow.
You layoff 25k aetna workers would sink the ship. There are not that many employees that support it today.
She's fake. Oh I love the hard questions. ....doesn't answer the hard questions. We need a leader that cares about employees not her bonus checks and 23 million dollar salary
Karen oversaw all this yet keeps getting a pass.
So, let me understand this, we sold a ton of cheap Medicare advantage plans that are ki-ling us financially, so now we must lay off a bunch of employees that had nothing to do with this.
Oh, by the way, the genius behind all of the this gets to keep his job? How is this possible?
We also can’t forget they just fired two high level executives and one chief people officer that aren’t being replaced right away. So there’s savings in payroll this year. She also said they would be looking at real estate as well. Are there offices they really don’t need? Bet they will un load those for savings. I don’t think they will replace those folks until 2025. So layoffs might be just sublimate functions they can consolidate. I do think they are trying to be creative before doing unwarranted layoffs.
Where are you getting the 25,000 layoff number?
They are laying off 25000?