CVS Health on Friday named company veteran David Joyner as new CEO, succeeding Karen Lynch who stepped down from the helm of the struggling healthcare giant after an agreement with the board.
Shares of the company tumbled 11% to $57 in premarket trading.
Joyner, who is the president of the company's pharmacy benefit manager CVS Caremark, takes over as president and CEO from Friday, the company said.
The change comes on the back of repeated profit forecast cuts this year as the company's insurance segment has struggled with rising medical costs.
"The board believes this is the right time to make a change, and we are confident that David is the right person to lead our company," said chairman Roger Farah.
More: Stanley Goldstein helped create CVS. Here's why his family says he won't be forgotten.
The healthcare giant is also exiting its core infusion services business and plans to either close or sell 29 related regional pharmacies in the coming months, Reuters reported earlier this week.
The Wall Street Journal had first reported the news of Joyner's appointment on Friday.
CVS recently announced layoffs that would impact RI
CVS has filed notice with the state that it intends to lay off 632 people who live in Rhode Island or report to supervisors who work in Rhode Island following last week's announcement that it will be cutting thousands of corporate jobs.
Of the 632 people who will be laid off across the company, 153 of them live or work in Rhode Island, including Rhode Island-based remote workers.
What positions will be laid off at CVS
Among the positions that will be going away at CVS, there are:
- 8 vice-presidents (HR, shared services, strategy, enterprise strategy)
- 13 analysts
- 69 senior analysts
- 29 executive directors (marketing, software development, pharmacy operations)
- 63 software engineers (staff, senior)
- 14 senior manager software engineers
Who is David Joyner?
According to a news release , Joyner was most recently executive vice president of CVS Health, and president of CVS Caremark. He led the pharmacy services business and has 37 years of health care and pharmacy benefit management experience, having served on the boards of several private equity-backed health care companies. He began his career at Aetna as an employee benefit representative before joining Caremark Prescription Services as a regional sales manager. He then served as executive vice president of sales and account services at CVS Caremark and executive vice president of sales and marketing at CVS Health.
What to know about Karen Lynch
According to her biography on the CVS Health website , Lynch became president and CEO in February 2021. Prior to that she was executive vice president of CVS Health and president of Aetna, and previously held executive positions at Cigna and Magellan Health.
In 2023, Lynch made the TIME100 annual list of the hundred most influential people in the world.
Who founded CVS and how did it start in RI?
Stanley Goldstein , a kid from Woonsocket who grew up humbly and founded a tiny company called Consumer Value Stores that grew into the gigantic CVS Health corporation .
H e and his brother Sid created CVS in 1963, when drugstores basically didn’t exist. Most health and beauty items were sold in grocery aisles. They heard about White Cross stores in Pennsylvania that sold only health and beauty items, in stand-alone stores separate from grocery stores. The Goldsteins decided to offer even more items than the White Cross stores, and thus began Consumer Value Stores. When asked why they eventually became known as CVS, Stanley said it was because the signs were cheaper with just the abbreviation.
This article originally appeared on The Providence Journal: CVS replaces CEO Karen Lynch amid layoffs, cuts. What we know.
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