Had a call with my VP today and she addressed the rumors of layoffs. She said to prepare for major shakeups next week among top brass (SVP and up) and confirmed there are NO pending layoffs to our team. She was very candid and said she anticipates that new leaders will be very cost focused and that eventually a RIF will likely come of it.
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The company is very top heavy and they need to rid themselves of a lot of inflated egos in the SVP and VP titles. Those roles are not really adding any value and are a big financial drag on the company.
People are beginning to receive emails from their manager saying they are non-compliant .
Looks as if that are counts May and June
Companies can and often do anticipate near term revenue reduction when there is a vertical or horizontal acquisition. Caremark was expected to lose some portion of business that was related to a competitor of Aetna… business associated with oak street tied to their partnership with AARP/optum/UHC was expected to degrade. When cvs pharmacy buys other pharmacies they expect some % of customers won’t stick around.
They may anticipate longer term growth that could surpass what they lost but in healthcare where there is margin compression literally everywhere… it’s more about trying to protect the bottom line from further deterioration. Top line revenues in healthcare are generally growing but not faster than the cost of goods sold + operating expenses for that revenue. Buyers would definitely take a % off the combined revenues if it provided better bottom line or slowed bottom line deterioration.
We need new leadership and FAST! We shouldn't have to worry about layoffs every single year! Enough is enough! They already underpay us. Ki-l us financially and mentally. Thanks Karen!
Tell ya what, remind me in a week about the earnings aren't dismal. If you still have an internet connection lol
@2tbo+1tOpA3Ef Earnings are far from dire. Since CVS acquired Aetna, the company has generated billions from health insurance. Companies don’t merge if they anticipate any revenue loss in the foreseeable future. Health insurance, particularly Medicaid and Medicare, is highly profitable. The company’s executives are aware of this, but they manipulate the books to show a “fake loss” or decline in revenue.
Why are they doing this?
Executives often have performance targets tied to bonuses and incentives. Manipulating reports can help them meet these targets. By underreporting profits, companies can reduce their tax liabilities.
President BK is a master manipulator. He is an expert in cooking books. He was hand picked and brought in to do one thing and one thing alone. RIF and save Billions.
My VP is not a VP Material. This individual does not have any VP experience or at least a Masters. It was working as a Manager/Director in a small mom and pop home and company with two people and glow the resume to lie to get the VP position in the department. This unqualified individual is now selecting left and right to terminate people disregarding all labor laws. CVS Should get rid of this “i-d-i-o-t” first.
Only thing saving this company is if the entire exec team is fired.
Earnings are going to brutal, and they're trying to get ahead of that with aggressive moves.
Unfortunately, they waited too long to announce. Market is in turmoil, and what would be seen as positive in an up market will be seen negatively in this market. If the stock keeps dropping aggressively, the speed of layoffs will increase aggressively.
what is concerning is if they are actually waiting for warn notice window, that could not be good for severance payouts.
not going to be fun for anyone.
We all know that since we are international now. The 100% of the RIF is in the US only and all gone and the offshored people are replacing them. The greed of this incomprehensible that they would gamble and not just CVS to turn the US into some giant work camp paying people nothing not even health insurance and treating them like trash so the Boards can live like in the Rich in mideval times.
@1frz+1tOpA3Ef it should go beyond Karen. Every mouth breathing re--rd in finance who fu---d up Medicare Advantage utilization forecast should be summarily fired and their bonus retroactively clawed back.
What division are you under?
Karen must go. She has lost everybody’s confidence. The board needs to fire her and all her directs. Incompetence cannot be restored until they are held accountable. Executive directors and above should be the only cuts. The members won’t even notice as they are useless and do nothing but delegate anyway.
What a sad state this company is in when there is constant anxiety about being rif'd. The leadership team is so bad it's shocking.
Is that Mr. Y you're talking about?
My vp is a fu--ing snake who would fire their mother to save their job.
This def isn’t about VP of remote engineers
this makes no sense since they just brought new leadership.
This post may or may not be based on VP facts. However you can’t deny that SVP/ VP levels are bloated. You have SVPs reporting to SVPs and same for VPs. Even when you don’t have that, certain SVPs have much broader power than their peers. DDAT is an example to a degree and so is Ops area. So a shakeup at higher level may not be an unfounded rumor. However it is hard to believe that shakeup at that level does not cause downstream layoffs.
This is a very questionable post. Who “has a discussion with their VP” then comes here to post it. I don’t believe it.
Are you 100% sure she would really tell you if layoffs were imminent for the team? I don’t trust my VP as far as I can throw them.
@qxw+1tOpA3Ef - Reduction in force :)
What does RIF stand for?
Original poster - thanks for sharing this. What side of the biz are you? Aetna or CVS?
I'm hearing end of September notification with end of November being termination date. This makes sense given the 60 day warn notice they need to cover. So maybe brass goes first then new leaders cut little people as they build out new teams.
I think some are missing the buried lead. With cost focus there will probably be RIF’s due to cost containment down the road. I’m guessing before year end.
What team are you on/affiliated with?
I hope it's true
Would not be surprised given how the place has been coasting all year.
Here's hoping this is the case - it SHOULD be the SVPs and up that are forced out instead of those who actually DO THE WORK. Not to mention they are GROSSLY overpaid, so won't take as many of them getting canned to get the savings we promise on the earnings call. Somehow I don't believe it, though, since... you know... this is CVS and anything rational decision is near impossible here.