Latest Round of Layoffs Hits Aetna Division
CVS Health has announced the elimination of 55 positions reporting to Aetna’s headquarters in Hartford, Connecticut, as the healthcare giant moves to shut down its CareFree insurance plan. This strategic decision represents another step in the company’s ongoing efforts to streamline operations and reduce costs across its healthcare portfolio.
“We are sunsetting CareFree operations by the end of this year as part of our work to optimize our core business operations,” a CVS Health spokesperson confirmed to Becker’s on April 29. The company stated it is “working with external agencies to provide assistance, where possible, to facilitate the transition to another field marketing organization’s hierarchy.”
Remote Workforce Primarily Affected
While the 55 affected employees officially report to Aetna’s Hartford headquarters at 151 Farmington Avenue, the majority work remotely from locations outside Connecticut. According to the April 24 WARN notice filed with state authorities, only two of the impacted employees are Connecticut residents.
The employment terminations will span several months, with the notice stating that the first separations will occur on July 26. However, a detailed timeline included with the notice reveals that the bulk of layoffs will begin on August 3, with terminations continuing through the end of 2025.
Support Services for Displaced Employees
CVS Health has confirmed that all affected employees have been notified of the impending job cuts. The company is offering a comprehensive support package for those impacted, including severance pay, continued benefits, and access to outplacement services designed to help workers transition to new employment opportunities.
Part of Broader Cost-Cutting Strategy
This latest round of layoffs is not an isolated incident but rather part of a larger corporate restructuring initiative. In October 2024, CVS Health announced plans to eliminate approximately 2,900 corporate positions nationwide as part of a broader strategy to cut $2 billion in expenses over several years. The healthcare conglomerate has been struggling with rising medical costs that are affecting the entire industry.
For the Hartford operations specifically, this marks the fifth round of layoffs in less than a year. Previous workforce reductions included nearly 100 corporate jobs at the Hartford-based headquarters in October 2024, along with 323 remote positions reporting to Hartford. Additional cuts followed in November, December, and January, steadily reducing the company’s workforce in the region.
What is the CareFree Insurance Plan?
The CareFree operation being closed was specifically focused on offering Medicare plans and services to agents who sell health insurance. The layoffs affect a diverse range of positions, including executive directors of sales, lead decision scientists, government program operations managers, and senior financial managers and analysts.
Regional Impact and Commitments
When CVS acquired Aetna in 2018 for approximately $70 billion, the company made specific commitments regarding the Hartford operation. It agreed to maintain Aetna’s headquarters in Hartford for at least a decade—a commitment that extends until 2028.
A companion agreement with Connecticut insurance regulators included a promise to maintain employment at Aetna and its subsidiaries at 5,300 for at least four years. This employment guarantee expired in 2022, potentially enabling the current workforce reductions.
Political Response
The steady stream of job cuts has raised concerns among local politicians. Republican Senator Tony Hwang has expressed his alarm over the situation, sending a letter to the state Department of Insurance and Department of Economic and Community Development commissioners seeking answers about the ongoing reductions.
“This drip, drip, drip of significant job losses continues to be troubling,” Hwang noted. He emphasized that CVS had made specific employment commitments when seeking approval for its Aetna acquisition.
Industry Context
The healthcare industry has seen multiple rounds of layoffs in 2025 as companies adjust to changing market dynamics, regulatory environments, and economic pressures. In April alone, several major healthcare organizations announced workforce reductions, including Crozer Health in Pennsylvania (impacting over 2,600 employees due to facility closures), UW Medicine Center in Seattle (eliminating 32 positions), and MaineGeneral Health in Augusta, which revised previously announced layoff plans.
Future Outlook
As CVS Health continues its restructuring efforts, the healthcare giant faces the challenge of balancing cost-cutting measures with maintaining service quality and meeting its commitments to the communities it serves. The company has not announced whether additional layoffs might follow as part of its ongoing operational review.
The closure of the CareFree insurance plan represents a strategic shift in how CVS approaches certain market segments, particularly in the Medicare space. Industry analysts will be watching closely to see how this move affects the company’s competitive positioning in the increasingly complex healthcare insurance landscape.
For the Hartford region specifically, questions remain about the long-term presence of Aetna operations once the 2028 commitment period expires, creating uncertainty for the local economy and workforce that has long benefited from the insurance giant’s presence.
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