One of the largest U.S. retail pharmacy chains is laying off workers at two regional offices in the Dallas-Fort Worth area as part of the company's broader restructuring efforts to reduce its annual expenses by $600 million starting next year.
Rhode Island-based CVS Health Corp. plans to permanently lay off 167 employees in the Dallas area beginning Oct. 21, according to a letter the company sent the Texas Workforce Commission. The job cuts will occur at 1300 E. Campbell Road in Richardson, Texas, and 750 W. John Carpenter Freeway in Irving, Texas. Both facilities are expected to remain operational by CVS Health, a spokesman told CoStar News.
The layoffs are tied to CVS Health's restructuring efforts that include cutting 5,000 jobs nationwide to drive efficiency as it focuses on investments in technology and more healthcare offerings. This year, CVS Health closed on the separate acquisitions of Signify Health for nearly $8 billion and Oak Street Health for $10.6 billion.
Even though the two offices where CVS Health is cutting jobs in the Dallas area will remain open, the company is closing other U.S. offices. CVS Health recorded "office real estate optimization charges" during the first half of 2023 tied to the "abandonment of leased real estate" as part of the "planned reduction of corporate office real estate space in response to the company's new flexible work arrangement," according to a regulatory filing by CVS on Aug. 2. For a CVS Health customer service representative, this could include working entirely from home rather than in an office.
Additional information on the office closures was not immediately available. The restructuring is expected to cost CVS Health nearly $500 million associated with the 5,000 job cuts as well as the impairment of noncore assets, the company said in its second-quarter earnings report with the Securities and Exchange Commission.
"We do not expect there to be any impact to our customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers," said Mike DeAngelis, executive director of corporate communications for CVS Health, in an emailed statement. "Throughout our company’s history, we've continuously adapted to market dynamics to lead the industry. The difficult decision we are making will set the company up for long-term success."