Leadership Change and Financial Outlook
Karen Lynch steps down as CEO of , with David Joyner, a veteran of the company, taking over the role. This change comes after CVS faced a significant drop in its stock value and repeated earnings forecast cuts.
CVS Health announces a third-quarter earnings forecast well below expectations, attributing the shortfall to higher-than-expected medical cost trends and rising claims from its coverage.
Strategic Shifts and Industry Challenges
David Joyner, with 37 years of experience in healthcare and pharmacy benefit management, is expected to lead CVS through its current challenges, including slumping drugstore sales and investor pressure.
CVS Health's strategic adjustments include cutting its 2024 earnings outlook, planning to close 900 stores, and reducing its workforce by 2,900 as part of a multiyear productivity initiative to address rising medical costs and maintain competitiveness.