CVS shakeup: Stock tumbles on abrupt news that David Joyner will replace CEO Karen Lynch

CVS Health has announced a major leadership change, appointing David Joyner as its new president and CEO, effective immediately, replacing Karen Lynch. Joyner has nearly four decades of experience in the industry and was previously president of CVS Caremark and executive vice president of CVS. The company's stock dropped over 7% in early trading following the announcement. Lynch had been CEO since February 2021, but the company has struggled with repeated forecast cuts for revenue and profits, with shares down over 21% year-to-date. CVS has also faced challenges in the retail market, announcing plans to lay off 2,900 employees and close over 900 stores in the next three years. The company's latest earnings report showed quarterly revenues up 2.6% year-over-year, but with revised forward guidance anticipating a slowdown. The board believes Joyner is the right person to lead the company and address the challenges it faces. Joyner stated that he is committed to delivering the company's best every day to everyone it serves. The leadership change is seen as a necessary step to build on the company's position of strength and advance operational improvements.