In a significant blow to the Dallas-Fort Worth job market, three prominent companies, CVS Health, AppFolio, and WayForth, have announced a combined slashing of 220 jobs. This disturbing news comes on the heels of earlier layoffs in North Texas that saw nearly 1,000 workers losing their jobs. The three companies, spanning the healthcare, property management software, and moving services sectors, are each battling their unique challenges that have led to this unfortunate development.
CVS Health, a household name in the national pharmacy chain industry, is at the forefront of these layoffs, planning to let go of 167 employees across its corporate offices in Richardson and Irving. The layoffs are a part of CVS’s broader strategy to restructure the company, aiming to reduce expenses following cost pressures to integrate multibillion-dollar deals. These layoffs, spanning a wide range of positions from administrative assistants to vice presidents, are set to commence from October 21, according to a Worker Adjustment and Retraining Notification submitted to the Texas Workforce Commission. Despite a reported 10% increase in total revenues in its second quarter, CVS cited the need for an enterprise-wide restructuring plan to streamline the organization.
Mass Layoffs in Dallas-Fort Worth: CVS Health, AppFolio, and WayForth Cut 220 Jobs
Dallas-Fort Worth is experiencing another wave of layoffs with CVS Health, property management software company AppFolio, and moving company WayForth announcing a combined job cut of 220. This follows a previous round of layoffs earlier this month that saw nearly 1,000 workers lose their jobs.
CVS Health Announces Restructuring
CVS Health, the healthcare conglomerate renowned for its national pharmacy chain, is planning to layoff 5,000 of its 300,000-strong workforce as part of a companywide restructuring. The move is aimed at reducing expenses due to the cost pressures of integrating multibillion-dollar deals. CVS is cutting 167 positions at its corporate offices in Richardson and Irving, spanning roles from administrative assistants and engineers to executive directors, senior managers, and vice presidents. The layoffs, which will begin on October 21, are expected to cost the company $496 million in severance and other employee-related expenses. This comes despite the company reporting a 10% increase in total revenues in its Q2 results, up to $88.9 billion.
AppFolio’s Workforce Reduction
AppFolio, a cloud-based real estate management platform, is also trimming its workforce, laying off 38 people at its Richardson facility, six of whom are remote. The reduction is part of larger workforce cutbacks, with nearly 150 employees facing redundancy. CEO Shane Trigg stated that the firm was not profitable entering 2023 and that they had to make these changes to ensure the long-term health of AppFolio. Despite implementing measures such as shrinking office space and re-evaluating hiring needs, the company’s costs have increased significantly, forcing this decision. Despite the layoffs, AppFolio reported a 25% revenue growth in its Q2 results, taking its revenue up to more than $147 million.
WayForth’s Failed Capital Raise
Moving services company WayForth is also facing difficulties after failing to raise the necessary capital to continue operating its locations across the country. As a result, the company has cut 15 jobs in Grapevine. The company is retaining only its Richmond, Va. location, and has asked customers with stored items in other locations to vacate their storage units by August 31. The company did not respond to questions from The Dallas Morning News.
This wave of layoffs indicates a challenging business environment in Dallas-Fort Worth, with companies needing to restructure and reduce workforce to manage costs and ensure long-term sustainability. Despite reported revenue growth in some cases, cost pressures and inefficiencies are forcing companies to make hard decisions. As businesses navigate these turbulent times, it underscores the importance of efficient management, cost control, and successful capital raising efforts.