CVS conducting strategic review, breakup possible

CVS Health Corp. is conducting a strategic review of options including a possible breakup, according to a person familiar with the matter, as the company faces headwinds from its drugstore chain and Aetna health insurance arm.

The diversified health-care company retained bankers to facilitate the ongoing review, the person said. While CVS isn’t yet close to making a decision, the person added, options under consideration include the various forms a potential breakup could take, including a separation of the company’s retail and insurance businesses.

CVS is continually exploring ways to create shareholder value, a spokesperson said in a statement, declining to answer further questions about the company’s future direction.

CVS has been grappling with falling profit margins at its retail pharmacies and rising costs of patient care from Aetna, which generates about a third of its revenue. In August, the company cut its 2024 earnings forecast for a third straight quarter.

The company also plans to cut roughly 2,900 jobs to reduce costs. Corporate roles will be the main focus, CVS said. None of the job losses will involve front-line workers at the company’s stores, pharmacies or distribution centers, they said.

Jeep urges hybrid SUV owners to park outdoors

Jeep is recalling more than 194,000 plug-in hybrid SUVs worldwide because they can catch fire with the ignition turned off.

In addition, Jeep is urging owners not to charge the SUVs and to park them outdoors and away from structures until they are repaired.

The recall covers the Wrangler four by e from the 2020 through 2024 model years, as well as the Grand Cherokee four by e from 2022 through 2024. Most of the recalled SUVs are in North America.

Stellantis, which makes Jeeps, said a remedy is near and affected customers will be notified when they can schedule service. The company says the risk of fire is reduced when the battery charge is depleted.

A routine review of customer data led to an investigation that found 13 fires with two injuries. Stellantis estimates that 5% of the SUVs have the problem.

Owners with questions should contact Jeep Customer Care at 800-853-1403 or go to www.mopar.com.

Job openings unexpectedly rise to 8 million

U.S. job openings rose unexpectedly in August as the American labor market continued to show resilience.

The Labor Department reported Tuesday that employers posted 8 million vacancies in August, up from 7.7 million in July. Economists had expected openings to be virtually unchanged. Openings were up in construction and in state and local government.

Layoffs fell in August. But the number of Americans quitting their jobs — a sign of confidence in their job prospects — slid to the lowest level since August 2020 when the economy was reeling from COVID-19 lockdowns.

Job openings have come down steadily since peaking at 12.2 million in March 2022, but they remain above where they stood before the coronavirus pandemic hit the American economy in early 2020. When the economy roared back with unexpected strength from COVID-19 lockdowns, companies scrambled to find enough workers to keep up with customer orders.

The overheating economy caused an outburst of inflation, and the Federal Reserve responded by raising its benchmark interest rate 11 times in 2022 and 2023. Inflation has come down — from a peak of 9.1% in June 2022 to 2.5% in August.

Compiled from Bloomberg and Associated Press reports.