HARTFORD, Conn. _ CVS Health Corp. confirmed Wednesday it eliminating jobs at Hartford-based Aetna as it moves ahead with integrating the health insurer into CVS, an acquisition that was completed at the end of 2018.
Rhode Island-based CVS would not say how many jobs were being cut in Hartford but said, in a statement, that it was a "very small percentage." CVS also would not say which areas of Aetna were affected by the layoffs, noting they were in "all part of the Aetna business."
"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 statement said.
When CVS Health Corp. acquired health insurer Aetna Inc. in 2018, its agreement with state insurance regulators in Connecticut included a promise to keep employment at Aetna and its subsidiaries at 5,300 for at least four years after the deal closed. The employment levels reflected staffing as of Oct. 1, 2018.
CVS completed its acquisition of Aetna in November, 2018. The majority of Aetna employees are located in Hartford, where CVS also agreed to keep Aetna's headquarters for a decade and create a center of excellence for CVS's insurance business.
"These changes will not impact our continued commitment to the state of Connecticut," according to the statement.
CVS said the level of layoffs in Hartford are not substantial enough to require a filing under a state law that mandates companies to disclose job cuts.
The agreement allayed fears that the $69 billion acquisition would result in heavy job losses at Aetna, headquartered in Hartford since 1853.
CVS posted revenue in the April-June period of $65.3 billion, up 3% from the second quarter of 2019. Profit soared 54%, to nearly $3 billion, which was due somewhat to reduced benefit costs as hospitals deferred elective procedures in the pandemic. It was partly offset by reduced volume and increased expenses related to CVS' heightened efforts in retail to fight COVID-19, such as its cleaning regimen and distribution of personal protective equipment to staff and customers.
Front store revenue declined due to reduced store traffic partially offset by an increase in items purchased by consumers. However, toward the end of the quarter, sales increased as store traffic began to return with states easing stay at home orders.
CVS said the reorganization and consolidation at Aetna stretches across the country and is dispersed across several states.
CVS said the employees in Hartford losing their jobs would have the opportunity to apply for other jobs within the company. Those who cannot find another position will be given a severance package and outplacement services.
