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David Joyner replaces Karen Lynch; Share price slide

Posted on by Vanessa
David Joyner replaces Karen Lynch; Share price slide

CVS Health announced Friday that it has named David Joyner president and chief executive officer, effective Oct. 17.

Joyner replaces Karen Lynch, who the company said “has resigned from her position in consultation with the Company’s Board of Directors.” Joyner has also joined the board and current chairman Roger Farah will now serve as executive chairman, according to the company.

The move comes as CVS shares have fallen more than 25% this year, after the stock fell about 7% in early trading Friday. The company has also laid off around 8,000 employees in the last two years.

“The board believes this is the right time for change and we are confident that David is the right person to lead our company for the benefit of all stakeholders, including customers, employees, patients and shareholders,” Farah said in a statement press release on Friday.

According to CVS Health, Joyner most recently served as executive vice president of CVS Health and president of CVS Caremark, leading the pharmacy services business. The company also said Joyner has 37 years of experience in health care and pharmacy benefits management.

“There is no greater honor than leading a company whose mission and purpose are entirely focused on improving health,” Joyner said in the release. “I returned to CVS Health in 2023 because I believed I could give more to the company, and I am pursuing this opportunity today for the same reason.”

CVS Layoffs: CVS Health is laying off nearly 3,000 workers, mostly in “corporate” positions

CVS laid off nearly 3,000 employees earlier this month

CVS Health has laid off about 2,900 employees across the company, and the affected positions were “primarily corporate functions,” Mike DeAngelis, executive director of corporate communications, confirmed to USA TODAY earlier this month.

“Our industry faces ongoing disruption, regulatory pressures and changing customer needs and expectations. Therefore, it is critical that we remain competitive and achieve excellence,” DeAngelis said in an emailed statement to USA TODAY.

DeAngelis also said in the statement that the company “prioritized cost savings wherever we could, including closing open job postings” before making the decision and that the layoffs “will not impact front-line jobs in our stores.” , pharmacies and in sales”. Centers.”

“Decisions about which positions to eliminate were extremely difficult,” DeAngelis said, noting that departing employees would receive severance and benefits. The layoffs represent less than 1% of the company's workforce, DeAngelis said.

An additional 5,000 employees were laid off in 2023

CVS Health also eliminated about 5,000 “non-customer-facing” positions to reduce costs in 2023.

The cuts affected less than 2% of the company's total workforce, which numbered about 300,000 employees at the end of 2022.

“Our industry is evolving to adapt to new consumer health needs and expectations. “As part of a company initiative to reprioritize our investments in health care and technology, we must take difficult steps to reduce costs,” the company told USA TODAY in 2023.

In early 2023, the company completed a $10.6 billion deal to purchase Oak Street Health, a company that operates primary care centers for low- to moderate-income people with Medicare Advantage plans, which are privately run versions The federal government's program for older people is 65 and older.

With the acquisition, CVS Health sought to capitalize on the federal government's interest in reducing costs and improving people's health through its Medicare program.

“This agreement with CVS Health will accelerate our ability to achieve our mission and continue to improve health outcomes, reduce medical costs and provide a better patient experience while delivering significant value to our shareholders,” said Mike Pykosz, CEO of Oak Street Health Timing of the deal.

Gabe Hauari is a nationally featured news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].

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