The healthcare company has been working on the integration of Aetna within its group
Aetna headquarters in Hartford. (Credit: grendel|khan/Wikipedia.org)
CVS Health said that it will undertake job cuts at US health insurance company Aetna, which it had acquired for $70bn in late 2018.
The healthcare company did not reveal the exact number of jobs that it will be terminated. However, it said that the job cuts will impact a “very small percentage” of the Aetna’s workforce in Hartford, Connecticut, reported Hartford Courant.
Aetna is headquartered in Hartford where it is said to have thousands of employees.
CVS Health did not specify which areas of the health insurer would be impacted by the job cuts.
The healthcare company stated: “Within the Aetna business, we are in the process of reorganizing and consolidating certain business segments to take advantage of CVS Health’s enterprise capabilities, while continuing to grow our core businesses and create added value for our members, customers and provider partners.”
The company also said that the reorganisation and consolidation at the health insurance subsidiary will be undertaken across the US.
CVS Health’s offer for the impacted Aetna employees
It further said that the Aetna employees in Hartford who will lose their jobs will be given the scope to apply for other roles within the company. CVS Health claimed that it will provide a severance package and outplacement services for those who cannot find another role within the group.
According to the company, the level of job cuts in Hartford is not significant enough to require a filing under a state law that makes it compulsory for firms to disclose layoffs.
In 2018, CVS Health reached an agreement with Connecticut insurance regulators to sustain a workforce of 5,300 at Aetna and its subsidiaries for at least four years upon closing of the deal.
At the time of signing the deal in December 2017, CVS Health said that the acquisition of Aetna will help address the rising healthcare expenditure by providing less expensive medical services across pharmacies.