HARTFORD – CVS Health has notified the state’s Department of Labor and Mayor Arunan Arulampalam that it intends to lay off 416 employees in December.
In a state-mandated letter informing the officials of the mass separation of employees, CVS Health said the terminations, which will be permanent, will take place from Dec. 8-Dec. 21. The healthcare provider and pharmacy manager said the layoffs will affect workers at 151 Farmington Ave. and will include some who work at the facility and those who were “outstationed,” or work remotely.
Of the total employees affected by the layoff, 323 are remote, while 93 work in the Hartford headquarters, which is the site of the former Aetna headquarters. In 2018, both companies combined operations in a $69 billion merger of the retail pharmacy company and health insurer.
“All employees who will be terminated as a result of this action have been notified of their specific separation dates and that their separation from employment will be permanent,” the letters signed by Senior Vice President, Human Resources Erin Ridge states. “There are no bumping rights for the affected employees and the employees are not represented by a union.”
The job titles of the terminated employees range from account director to analysts, manager of corporate communications, manager of talent acquisition, and security engineer.
At least one Fairfield County state legislator chimed in on the announcement Tuesday.
“Transparency. From the start, that’s what we asked for,” Sen. Tony Hwang, ranking senator on the legislature’s Insurance and Real Estate Committee. “Yet, CVS is still not providing answers regarding the total employment at the Aetna headquarters in Hartford. Why? Shine sunlight on this announcement so that we, as policymakers, can assess it on a bipartisan basis.
On Oct. 1, it was reported that CVS Health would shed 2,900 jobs companywide to reduce costs by about $2 billion.
According to an exclusive report from Reuters Sept. 30, CVS Health is exploring options that could include a break-up of the company to separate its retail and insurance units, as the struggling healthcare services company looks to turn around its fortunes amid pressure from investors.
CVS has been discussing various options – including how such a split would work – with its financial advisers in recent weeks, the sources said, requesting anonymity as the discussions are confidential.
The plan to potentially split the company’s pharmacy chain and the insurance business has been discussed with the board of directors, which is yet to decide on the best course of action for CVS to pursue, the sources said, cautioning that the plans have not been finalized and CVS may opt for a different strategy.
CVS has 141 retail pharmacy stores in Fairfield County and 634 throughout the state.
