HARTFORD CVS Health Corp. will make even greater job cuts at its Connecticut corporation, implementing dozens of additional layoffs on top of those that have already begun this month, with further effects on employment at its health insurance division in Hartford.
Rhode Island-based CVS told the state Department of Labor on Friday that it will cut 70 additional corporate jobs by the end of this year, bringing to nearly 600 the number of layoffs in Connecticut or linked to CVS’s Aetna unit in Hartford. In 2018, CVS acquired Aetna, a Hartford-based health insurer.
Of the 70 positions, 30 are in Hartford, bringing the total number of employee layoffs at Aetna’s city branch to 336. The job eliminations come in two waves of layoffs related to a previously announced nationwide job cut of 5,000. summer, a CVS spokesman said in a statement.
“The creation of 336 jobs in Hartford is part of a larger job reduction that now totals 561 and includes employees who live/work remotely in other states but report to someone located in Connecticut,” CVS said.
CVS says the remaining 40 jobs disclosed Friday fall into the latter category.
The first wave of layoffs began last week, and the layoffs revealed on Friday are scheduled to take place on December 30.
“We remain committed to supporting impacted associates,” CVS said in a statement, “and they will receive severance and benefits, including access to outplacement services.”
In Hartford, layoffs at CVS have raised concerns about the impact that large city corporations are having on stores and restaurants that depend on lunchtime and after-hours trade. The job cuts also raised concerns about the future of Aetna’s sprawling headquarters on Farmington Avenue.
Hartford Mayor Luke Bronin, who also received a copy of the layoff notice filed with the state, responded to a request for comment.
In announcing layoffs across the country this summer, CVS Health said it was cutting expenses and reallocating investments in health care and technology that will fuel future growth.
CVS said at the time: We do not expect any impact to our customer-facing colleagues in our stores, pharmacies, clinics or customer service centers.
When CVS acquired Aetna in 2018, its agreement with Connecticut insurance regulators included a promise to maintain employment at Aetna and its subsidiaries at 5,300 workers for at least four years. The four years ended in 2022.
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CVS also agreed to maintain Aetnas’ headquarters in Hartford for ten years and create a center of excellence for CVS’s insurance business
In 2020, CVS confirmed it had laid off some Aetna workers, saying it was laying off a very small percentage of workers in Hartford. CVS also did not disclose which areas of Aetna were affected by the layoffs, noting that all parts of Aetna’s business were affected.
In Connecticut, CVS’s workforce also includes a network of more than 170 pharmacies. CVS did not disclose the current number of jobs at Aetna’s headquarters in Hartford.
CVS employs about 300,000 people nationwide, and the 5,000 job cuts represent about 2% of the company’s total workforce, CVS said.
CVS began offering health care services in its MinuteClinics stores, emphasizing its ability to offer primary care while downplaying traditional retail sales conducted in its pharmacies.
In February, CVS became more deeply involved in providing physician services to patients. CVS said it would pay $10.6 billion to acquire Oak Street Health, a primary care provider primarily for adults covered by Medicare Advantage.
Kenneth R. Gosselin can be reached at email@example.com.
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