There have been a number of large layoffs in the pharmacy industry. Most recently Walgreens has said it is reportedly laying off 469 workers across multiple states, after recently being acquired by private equity firm, Sycamore Partners.
These layoffs come after Walgreens had already begun cutting jobs and closing stores under private equity ownership. As the Private Equity Stakeholder Project noted last month, Walgreens reported approximately 8,000 locations and 211,000 workers as of January, down from 8,500 stores and 220,000 employees reported at the time the buyout closed last August.
"When holiday pay cuts were announced, we said they could be a warning sign of things to come," said Jim Baker, executive director of the Private Equity Stakeholder Project (PESP). "Now Walgreens is laying off hundreds more workers, confirming concerns that early cost-cutting measures could be followed by deeper reductions. This pattern is unfortunately familiar in private equity takeovers."
Earlier this month, Cigna launched an initiative to streamline its operations, as well, and lay off about 2,000 workers or about three percent of its workforce. A Cigna spokesperson called the reductions a "difficult decision" that was made "with deliberate care and focus." On a call with investors, Cigna CFO Ann Dennison said, "We remain focused on driving greater affordability and value for the patients and clients we serve while continuing to execute with discipline against our financial targets."
Also, CVS Health – Aetna, said it is laying off 313 people who report to management. The layoffs disclosed this week are the eighth round since the health care giant made an announcement in September, 2024 focusing on job cuts. CVS said it planned to slash 2,900 corporate jobs nationwide over the next few years, as it struggled with rising medical costs and would shift to its core, or mainstay businesses.
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