Times are tough for many businesses and their workers this year, and CVS is the latest to announce cost-cutting measures that include laying off 2,900 employees of its healthcare business.

A CVS spokesperson told CBS that the cuts represents about 1 percent of the CVS Health workforce and are part of a goal to reduce costs by $2 billion.

Why CVS Health is Laying Off 2,900 People

You know the old saying, stuff just rolls downhill. The reason that CVS has decided to cut almost 3,000 jobs is simple. It’s apparently due to them having to pay more money to operate and getting less money in revenue.

According to a memo released to employees, CVS says, “Our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations, so it is critical that we remain competitive and operate at peak performance.”

CVS isn’t the only pharmacy struggling this year; Walgreen’s also announced cost-cutting measures, including store closures, in 2024.

CVS claims that the cuts will mostly be those on a corporate level, saying, “The reductions will not impact front-line jobs in our stores, pharmacies and distribution centers.”

According the CBS report, the company added that employees whose jobs are cut will be notified this week and will receive severance pay and benefits as well as access to outplacement services.

CVS Health not only owns CVS drug stores, they also own Aetna Health Insurance. Rumors have been swirling that CVS might break up the companies into separate footprints, but that has yet to be confirmed.