Thread regarding CVS layoffs

Expect stealth layoffs...

Expect stealth layoffs here and there before a larger mass layoff or two down the road. For now they will target low performers, people who don't want to RTO, folks who are earning close to the top of their pay grades, "Directors" that have no direct reports. They'll keep these numbers low enough to avoid WARN notices, but folks will suddenly disappear with no real communication about it.

Groups are trying to position themselves ahead of the big layoffs by cutting off the easy targets now, so they don't have to go so deep when the big one comes, which will most likely come in waves, 2k here, another 2k 6 months later or so.

Right now, they're laying the groundwork for using chat bots / automated AI systems to replace call center folks, and outsourcing essential functions that require a live person. They're expecting huge savings here in the next 12-18 months between headcount and real estate expenses, this will be managed by 3rd party vendor for the most part. On the IT side, they're moving to shift to external vendors for as much as possible to cut headcount (this is a little smoke and mirrors, headount is a key metric related to the stock performance, the jobs likely will shift from being CVS employees to being offered a role by the an external vendor who may or may not have similar benefits)

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| 3336 views | | 15 replies (last August 28)
Post ID: @OP+1ubI92cT

15 replies (most recent on top)

@1elm+1ubI92cT. I've never heard that you can't get unemployment if you were let go due to a PIP. In my state that's not the case. In my state you would be refused employment if you were let go for willful misconduct, however.

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Post ID: @2swq+1ubI92cT

It's amazing being in IT and it's a total shi*show every day. They need to stop outsourcing. You get what you pay for. Before we used vendors code went into production pretty flawlessly.

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Post ID: @2doj+1ubI92cT

Mass layoffs early October of 2024, already plans in place for HR, security, and so on. It’s amazing that no one complains about Karen Ly--h’s helicopter, multiple security vehicles, and that she goes on vacation when layoffs hit.

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Post ID: @2yax+1ubI92cT

I worked at another company that did the same thing. Massive layoff early in the year, 6 months later many were put on a PIP. And yeppers, no severance to pay. Very cost effective way to get rid of people. But also very shady.

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Post ID: @2nvf+1ubI92cT

How will you know? Your Manager will contact you and tell you that you are on a PIP.

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Post ID: @2tlv+1ubI92cT

How do you know if you are put on PIP? Not all divisions have mid year reviews ours is yearly

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Post ID: @1zoi+1ubI92cT

Had my mid year with no issues. Less than a month later put on PIP. Must be the direction given for this go around. No severance or unemployment if your “let go” on a PIP.

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Post ID: @1elm+1ubI92cT

Sadly this news is true.Unfortunately I am also being PIPed out. But this is not performance rather politically driven.
But the worst part is there are ample of low performing people who are sitting in my team for last 4-5 years but they have boot licking skills above others.

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Post ID: @1nll+1ubI92cT

Regarding the shift to contractors and why they're doing it.

Look up revenue per employee ratio, which is used by investors and affects stock price. They need to drive this number lower.

Also, while someones hourly rate may increase when they work for a contractor, this doesn't take into account the fully burdened compensation of a FTE that is the true cost of the employee to CVS (this includes compensation and benefits), and typically can run up to 1.3-1.4 times an individual's pay rate. for example, your salary is $100k, with benefits and associated costs the company incurs, their budget calculations will show your your cost to the organization to be $130k-$140k. External vendors may offer some benefits but rarely are they as comprehensive or generous. cvs can pay the vendor $120k for your role and come out ahead, and you get paid more per hour. this is just an example, I'm not sure of what the multiplier actually is for CVS, it could be higher than 1.4.

Also - keep in mind, many times when a vendor is going to be used, it is project based, where a project has x amount of funding with a start and more importantly an end date.

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Post ID: @1rlu+1ubI92cT

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of CVS Health Corporation (CVS) Investors

https://www.frankcruzlaw.com/cases/cvs-health-corporation/

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Post ID: @1vmp+1ubI92cT

As a customer, I want my coverage and claim info to come from a HUMAN.

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Post ID: @1gdf+1ubI92cT

FYI, as someone that was laid off last year, contractors are paid VERY well. I took a contract job temporarily and was paid at least 10-20% more than the FTE staff, and had full benefits. It was also temporary to full time hire. I left due to a better offer, but if anyone thinks this type of model is cost saving for CVS… it’s not. And I’m not sure why the heck CVS is leaning into this model. No allegiance to the organization and contractors are gone as soon as something better comes along. Just saying.

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Post ID: @1ato+1ubI92cT

I know about a month before Karen’s layoff announcement there were a wave of PIPs that were put in place on a Friday (and not during people’s 1:1s) I know fon3 people who were shocked by it - most were top earners & performers on their team.

2 quit before PIP finished and the 3rd beat the goal given to them and then was taken off when they asked “why hasn’t _____ been put on a PIP when they aren’t even meeting my performance numbers from before my PIP?”

That 3rd person also emailed their notice literally as another team member was being laid off….which apparently messed up “the plan” and they then had 2 open spots they couldn’t fill not 1.

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Post ID: @1tlf+1ubI92cT

Allot of detail here. Thank you. Will the low performers be “managed out” or offered a severance package?

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Post ID: @1ihv+1ubI92cT

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