CVS Laying Off Thousands of Employees

August 2nd, 11:51 AM EDT

Updated:

August 2nd, 2:17 PM EDT

By Nathan Vicar

CVS store sign

MGN via Chris Rycroft / CC BY 2.0

(NEWSnet) — CVS Health is laying off about 5,000 employees as part of an effort to reduce costs, the retail pharmacy chain said Tuesday.

The layoffs will primarily affect "non-customer facing positions" such as corporate roles. The move is not expected to impact brick-and-mortar stores, pharmacies and clinics.

Laid-off workers will receive severance pay and benefits, the company said.

The Wall Street Journal, which first reported the news, said the changes are part of CVS' effort to focus on health services and away from magazine and snack aisles.

In May, the company closed a $10.6 billion acquisition of Oak Street Health.

CVS Health on Wednesday reported second-quarter earnings and revenue that beat expectations, as the company slashes costs and lays off thousands of employees.