What went wrong at CVS?

Pharmacy chains are in crisis

Illustration of a prescription pill bottle on fire
(Image credit: Illustration by Stephen Kelly / Getty Images)

The pharmacy industry is in crisis. That's especially true at CVS, where layoffs are piling on top of layoffs — and the future of the company is in question.

CVS Health announced this month that it is laying off 2,000 workers, CNN said, as part of an effort to "slash costs" across the company. That's on top of the 5,000 layoffs it announced last year, and after the company closed around 900 stores in recent years. CVS and other drug store chains are "struggling" due to falling reimbursement rates for prescription drugs, CNN said. "Our industry faces continued disruption, regulatory pressures and evolving consumer needs and expectations," said a company spokesperson.

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.