In September, US companies increased hiring activity, ending a five-month slowdown in employment growth. Data from the ADP report, often called "mini non-farm payrolls," showed an increase of 143,000 jobs, surpassing economists' expectations of 125,000, while August saw the smallest gain since March 2023.
CVS Health stock (NYSE: CVS) currently trades at $65 per share, 37% below its pre-inflation shock high of $102 seen in February 2022. In contrast, its peer – Walgreens stock – is down 78% over this period, amid falling profitability.
Splitting up the company would face challenges, but there is no perfect solution to its struggles.
Glenview Capital Management, a hudge fund that has been subject of certain media reports that it was pushing CVS Health management to break up the healthcare giant, denies it is “pushing for a break-up.”
CVS plans to lay off 2,900 workers, the company announced this week. The move comes as the pharmacy has been struggling with costs in a tough economy, and is considering breaking the company into two separate businesses, as Reuters reported.
“While there's no guarantee it will happen, any company split would acknowledge that CVS can't be the integrated healthcare powerhouse it once thought,” one analyst said.
Health conglomerate CVS Health said on Tuesday it will lay off about 2,900 employees, as it aims to cut costs.
The job cuts will not affect front-line jobs in CVS stores, pharmacies or distribution centers, a spokesperson said.
CVS Health is slashing its headcount by 2,900, or 1% of its total workforce. The layoffs will largely focus on corporate positions, a spokesperson said.
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, people familiar with the matter told Reuters.
CVS Health (CVS) reportedly is considering a breakup of its retail pharmacies and Aetna health insurance unit amid struggling results and pressure from investors, according to Reuters and The Wall Street Journal.
Pharmacy chain CVS is exploring options to separate its retail and insurance businesses, reports say.