CVS Health is laying off 38 financial workers tied to its northern Rhode Island offices, according to a Feb. 4 letter sent to state and local officials.
The cuts include 24 Rhode Island residents, who will lose their jobs in June, Howard Rankin, vice president of colleague relations, wrote in the letter. Other impacted workers live in other states and work remotely, reporting to supervisors in Rhode Island, Rankin said.
Federal law under the Worker Adjustment and Retraining Notification Act requires companies to let state and town officials know about closures and mass layoffs at least 60 days in advance.
The news comes six months after the health and pharmaceutical giant announced it was laying off 2,900 workers nationwide, equal to 1% of its workforce. Of the cuts made last year, 600 were positions based out of its northern Rhode Island facilities.
The latest layoffs also reflect cost-cutting measures aimed at shoring up the company’s weakened balance sheet, Kara Page, a company spokesperson, said in an email Monday.
“As part of these efforts, we are modernizing our finance organization to provide the innovation, speed and scale needed to meet evolving industry demands,” Page said. “As a result, a select number of internal finance roles will transition to an external partner.”
A majority of the jobs being cut are senior accounting positions, according to the letter.
Despite the latest signs of financial headwinds, Page reaffirmed the company’s commitment to Rhode Island, saying there was “no plan” to relocate or shutter its local headquarters. A potential restructuring floated by its board of directors in 2024 created speculation that Rhode Island could lose one of its top private employers.
In mid-October, the company swapped its corner office executive, while downgrading its financial forecast for the quarter that ended Sept. 30. It posted an $832 million profit for the third quarter of 2024, more than 77% less than the same time period a year prior, dragged down by its insurance arm. Adjusted earnings per share also dropped by $1.12 per share, year-over-year.
Fourth-quarter earnings are scheduled to be released on Wednesday.
CVS’ corporate offices span northern Rhode Island, most notably, its 250-acre campus straddling Woonsocket and Cumberland, which houses its customer support and retail pharmacy customer care centers, among other operations. The company also leases for state-owned property in Lincoln, Smithfield, and North Smithfield.
Cumberland Mayor Jeffrey Mutter said the latest round of cuts was “concerning,” emphasizing the personal toll for the workers affected. He was not worried, however, that the latest sign of financial troubles could jeopardize the company’s commitment to its Cumberland facilities.
“We have not had any conversations about that with CVS,” Mutter said, though he has not spoken directly with company executives since layoffs were announced last year. “We have had communications but not directly related to layoffs.”
Mutter added, “It might be appropriate we broach that subject now.”
Woonsocket Mayor Christopher Beauchamp did not immediately respond to inquiries for comment on Monday.
As of Oct. 1, CVS employed about 7,000 people in Rhode Island.
This story was originally published by the Rhode Island Current.
