12 employees who operate out of or report to supervisors in CVS Health’s northern Rhode Island office will be among the almost 800 employees who will lose their jobs in early 2025.
Less than three months after a round of local layoffs that eliminated over 600 employees based out of the Woonsocket and Cumberland plants, including 153 Rhode Island residents, state and local officials received the notice of layoffs on November 25.
Both reductions were a part of the pharmaceutical giant’s previously declared plans to fire 2,900 workers nationwide, or 1% of its staff, as the health care industry and its insurance division struggled and the company’s balance sheet weakened.
The company downgraded its financial forecast for the quarter ending September 30 and replaced its corner office CEO in mid-October.
The Worker Adjustment and Retraining Notification Act, a federal legislation, mandates that businesses notify state and local authorities about closures and mass layoffs at least sixty days in advance.
There is no explanation for the extra cuts in the letter sent on November 25 to the mayors of Cumberland and Woonsocket and the Rhode Island Department of Labor and Training.
The layoffs are a part of the 2,900 cuts announced earlier this year, including the closure of 29 of its pharmacies and the discontinuation of some services by Coram, the company’s acute home infusion service arm, according to an email sent on Monday by Kara Page, a spokesman for the company.
12 of the 796 employees who are scheduled to lose their employment between January 25 and February 7, 2025, are employed directly by the Woonsocket headquarters or nearby company operations in Cumberland and Woonsocket.
According to the layoff notification, the remaining workers are remote or work-from-home workers from other states who “report” to the Rhode Island location.
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Several management roles, one nurse, one executive assistant, and two senior data scientists are among the Rhode Island jobs being eliminated.
Concerns have been raised by CVS’s financial difficulties over the company’s future in Rhode Island, especially if the retail pharmacy and insurance are split off into separate businesses as its board of directors has previously recommended.
Initially, Page did not respond to specific inquiries on Monday on CVS’s pledge to remain in Rhode Island. Page stated that there are no plans to alter its Woonsocket headquarters in a follow-up email sent Tuesday morning.
According to Page, laid-off workers would get perks like severance money and assistance in seeking new employment.
