Tomorrow we report earning !! And today they announce layoffs. Not sure what to make of it? Are we showing lack of growth due to covid now in past? I assumed our Aetna was doing great but seems like we will be reporting bad earning and to compensate that high-ups thought to cut the jobs … weird
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CVS needs to pay for the acquisitions of lately. The stock is soaring today. They are weeding out the last of the old Aetna folks.
Aetna is doing well, mildly. Year over year, Aetna profits grow and help keep total revenue high. It's CVS's PBM and retail sector that also boost revenue. The recent drop in Stars for Medicare at Aetna is a direct result of poor management and Dan's hiatus due to his heart attack. However, the recent contract that Aetna brokers secured for next year with NYC has the potential to be veryucrative for the company.
I secretly wonder if somehow CVS is going to post a second quarter loss tomorrow, and all this layoff and cost cutting talk is to soothe investors fears, and assure wall street that "it's ok we have things under control"
Makes sense to focus on healthcare since it’s profitable, Will know tomorrow but moving towards healthcare as a whole rather then pharmacy is key
Companies do things in a certain way. CVS is seeing lower earnings and tomorrow will report to the market its earnings.
So they do not want to just say 'ops, down' but will try and show they are working on it. If you read the Karen letter she talks about organization or strategic changes as in we will redo the deck chairs on the Titanic.
Also, cut travel, consulting and people to show she is a leader of action. All is page one of the play book.
As bad as the mass email from her on Monday sounds it beats many other companies that tell the public first. Imagine hearing in the news CVS is laying off 5,000. Layoff never good but for what it is worth you heard it first.