By Drazen Zigic @ Shutterstock.com

Despite increasing demand for its products, CVS will cut 5,000 corporate jobs to reduce its costs. The Wall Street Journal’s Ngai Yeung reports:

The Woonsocket, R.I.-based company’s healthcare benefits segment reported revenue of $26.7 billion, up 17.6% from a year ago as more people used Medicare Advantage compared with the same period last year.

Its health services segment saw revenue climb 7.6% in the latest quarter to $46.2 billion, driven by recent acquisitions.

The healthcare company has been expanding the range of its offerings lately. Earlier this summer, the company closed a $10.6 billion deal for Oak Street Health, which operates primary-care clinics for the elderly. The company completed the almost $8 billion acquisition of home-healthcare company Signify Health in March.

The company’s pharmacy and consumer-wellness segment posted revenue of $28.8 billion, up from $26.7 billion a year ago. The sales were helped by higher drug prices and prescription volume, which partially offset a fall in demand for Covid-19 vaccines and tests and a weaker flu season compared with last year.

CVS this week said it was shedding about 5,000 jobs, primarily in corporate roles, to help cut costs. The company is also trimming down on travel expenses and its use of consultants and vendors.

The company reported a $496 million pretax restructuring charge for the quarter and expects to complete its restructuring program by the end of 2023.

Read more here.