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CVS Health is laying off around 2,900 people to cut costs, the company announced on Tuesday.
"We've embarked on a multi-year initiative to deliver $2 billion in cost savings by reducing expenses and investing in technologies to enhance how we work," a spokesperson said in a statement, per CNN.
Related: 'Tough Day For All of Us:' Intel CEO Announces Layoffs Affecting 15,000 People
Experts say several factors are causing the industry to struggle as a whole, including online shopping. Consumers are buying toiletries and personal items from Amazon, Walmart, and other large online retailers. Meanwhile, big box stores like Costco are cutting into what was once considered staple buys at drugstores, like toilet paper and snacks.
CNN also reports that Dollar General's growing market is causing slower sales at drug stores in rural areas. Falling reimbursement rates for prescription drugs are also a big factor.
Related: Apple Just Conducted a Rare Round of Layoffs. Here Are the Teams and Roles Affected.
"Our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations," the spokesperson said. "The reductions will not impact front-line jobs in our stores, pharmacies and distribution centers."
"The vast majority of impacted colleagues will be notified this week," the CVS spokesperson added.
The cuts will affect around 1% of CVS's total workforce.
On Monday, the Wall Street Journal reported that CVS has been exploring the possibility of breaking up the company.
Reuters reported that the move would potentially separate its retail and insurance units.
