Drugstore giant CVS has announced it will lay off 2,900 workers as part of a new measure to cut costs. The company has struggled to sell non-prescription goods due to inflation and rampant retail theft. According to a CVS spokesman, these reductions represent about one percent of the company’s workforce and save around $2 billion.
Inflationary pressures have led consumers to reduce spending on non-prescription items, hurting the financial performance of companies like CVS and Walgreens. Walgreens is considering closing up to a quarter of its 8,600 retail locations.
In a statement, CVS attributed the layoffs to “continued disruption, regulatory pressures, and evolving consumer needs and expectations.” Its most recent quarterly report noted a four percent decline in same-store sales for non-prescription products.
Inflation under the Biden-Harris regime has led to surging prices for families. A study published earlier this year found a family of four would need a household income of $177,798 to maintain a satisfactory quality of life.
Rising crime and theft have also forced many retailers to change their business practices. In Washington, D.C., stores last year posted framed images of products on shelves rather than the products themselves to prevent thefts. Stores like Whole Foods and Walmart were also driven out of Chicago due to rampant criminality, leading to proposals for government-owned grocery stores to replace them.
