CVS Health Announces Layoffs: Aetna Division to Cut 164 Remote Workers in Hartford

CVS Health, the parent company of Aetna, has announced plans to lay off 164 remote employees associated with its Hartford, Connecticut, headquarters.

Photo from: Ned Gerard/Hearst Connecticut Media

These cuts are part of a broader cost-reduction strategy as the healthcare giant grapples with challenges in the insurance sector.

Layoff Details and Timeline

The layoffs, scheduled to begin on February 15, 2025, impact employees assigned to the Aetna headquarters at 151 Farmington Avenue in Hartford (CT Insider).

According to CVS Health, these roles include case management analysts, registered nurse case managers, and community lead generator analysts.

Despite their association with the Hartford office, most employees work remotely, with only three positions directly based in Connecticut.

In a letter to the Connecticut Department of Labor dated December 20, CVS Health cited two key reasons for the layoffs: the loss of a major contract in Kansas and the decision to further reduce staff as part of a larger $2 billion cost-cutting initiative.

“We are committed to supporting these colleagues,” CVS Health stated, highlighting severance pay, benefits, and access to outplacement services as part of the company’s response to affected workers (NBC CT).

This latest round of layoffs adds to the 1,212 job cuts Aetna has undergone since August 2023. In November, CVS Health announced 43 layoffs in Hartford, a mix of remote and on-site positions. These workforce reductions reflect ongoing turbulence within the Aetna division, which has seen significant leadership changes.

Notably, Aetna President Brian Kane was dismissed in August 2023 after less than a year in his role. This was followed by the departure of CVS Health CEO Karen Lynch, a former Aetna executive, in October.

State officials and lawmakers have expressed growing alarm over CVS Health's layoffs, emphasizing the need for more transparency about the company's Connecticut workforce.

The layoffs also come amid broader challenges in the health insurance industry, where rising costs and shifting market dynamics have pressured profitability.

While CVS Health has emphasized its commitment to helping affected employees transition, the company’s ongoing layoffs are a stark reminder of the economic pressures facing even the largest healthcare organizations.

As the company continues to restructure, the implications for its workforce and the communities it serves remain uncertain.