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October 8, 2024

CVS to lay off 416 employees tied to Hartford-based Aetna – mostly remote, out-of-state workers

COSTAR Aetna's Farmington Avenue headquarters in Hartford.
By Andrew Larson

Hartford-based health insurer Aetna will terminate 416 employees who report to its office at 151 Farmington Ave., most of whom work remotely, according to a Worker Adjustment and Retraining Notification (WARN) filing with the state Department of Labor.

Of the total number affected, 93 work at the insurer’s headquarters and live in Connecticut. The other 323 employees work remotely and are based outside of Connecticut, but report to the Hartford office.

The news comes as Aetna’s financially-challenged parent company, CVS Health, explores options that could include a break-up of its retail and insurance units, Reuters reported last week. CVS is one of the largest healthcare companies in the U.S.

In August, CVS lowered its adjusted earnings outlook to between $6.40 and $6.65 per share, from its previous forecast of least $7 per share.

Employees affected by the “mass layoff” have been notified, CVS said in the WARN filing. The layoffs will take effect Dec. 8 to Dec. 21.

Late last month, CVS announced that it would cut 1% of its workforce, or about 2,900 employees, across the company.

The Aetna positions being eliminated include account directors, administrative assistants, engineers, pharmacists, sales representatives, business consultants, account executives, digital designers, project managers, health concierges and more.

The layoffs will affect employees at multiple levels, including vice presidents, senior vice presidents, associate vice presidents, senior managers, senior analysts, managers, lead directors, executive directors, associate managers, analysts, technicians and associates.

Aetna has just under 40,000 employees, according to published reports. As of Dec. 31, 2023, CVS said it employed over 300,000 people primarily in the U.S. including in all 50 states, 73% of whom were full-time, according to its annual report. 

The latest round of layoffs follows another downsizing last year. In August 2023, CVS announced that it would cut about 5,000 jobs nationwide, including more than 500 at Aetna. In its 2023 annual report, CVS said it recorded  $507 million in pre-tax restructuring charges, including $344 million for severance and other employee-related costs.

CVS, which has its corporate headquarters in Woonsocket, Rhode Island, purchased Aetna in November 2018 in a deal valued at $69 billion.

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