CVS Health Corporation (CVS) will cut approximately 2,900 jobs as part of a $2 billion, multi-year cost-savings initiative aimed at reducing spending and increasing investment in technology.

“To achieve this goal and position ourselves for sustainable growth, we will reduce our workforce by less than 1 percent – ​​approximately 2,900 colleagues at CVS Health,” a company spokesperson told Quartz in an emailed statement.

The spokesperson added that the impacted positions will primarily target corporate roles and will not impact frontline jobs in the company’s stores, pharmacies and distribution centers. Employees affected by the layoffs will be notified this week and will receive severance and benefits.

The news comes as the company is reportedly conducting a strategic review of its operations that includes a possible split between its retail and insurance businesses, Bloomberg reported, citing a person familiar with the matter.

“CVS Health’s management team and board continually seek opportunities to create shareholder value,” the spokesman said of the review.

The healthcare group includes the pharmacy chain CVS, the insurer Aetna and the pharmacy benefit manager (PBM) CVS Caremark.

The company is grappling with increasing challenges from rising operating costs at its drugstore chain and growing medical expenses at its Aetna health insurance unit.

The Wall Street Journal reported that CVS executives will meet with Glenview Capital Management this week to discuss strategies to improve operations in response to a decline in stock value.

The company’s share price has fallen over 22% since the beginning of the year.

In August, CVS announced that the head of its insurance business would be leaving the healthcare giant as its health benefits division dragged down the rest of the company in the second quarter of 2024.

During a call with investors, CVS CEO Karen Lynch broke the news that she would be replacing former Aetna President Brian Kane, who took on the role just last year.

Lynch also announced that CVS is planning a multi-year, $2 billion cost savings initiative based, among other things, on accelerating the adoption of AI.

“These savings will be driven by further streamlining and optimizing our operations and processes, further streamlining our business portfolio, and accelerating the use of artificial intelligence and automation across the company as we consolidate and integrate platforms,” Lynch said at the time.

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