Walgreens laying off more than 250 workers
Deerfield-based Walgreens is laying off more than 250 employees and eliminating open roles as part of its wider turnaround efforts, the company said Tuesday.
The pharmacy chain is cutting 256 support center roles, including at its corporate offices in Deerfield and the Old Post Office building. There are additional support center roles based around the country. The company is also eliminating 215 open positions, a company spokesperson confirmed.
Corporate layoffs were also authorized in May when 504 employees, or 10% of its corporate workforce, were laid off.
The layoffs come as Walgreens looks to “focus on our core retail pharmacy business,” spokesman Fraser Engerman said in an email.
“While decisions like these are always difficult, we believe this action is necessary to position us to rapidly respond to the changing external environment so we can best serve the millions of patients and customers who depend on us every day for their healthcare needs,” Engerman said. “We are grateful for the many contributions by team members who will be leaving, and we are committed to supporting them as much as possible during this transition.”
Impacted employees will be offered outplacement support and severance, according to Engerman.
Earlier this month, Walgreens announced plans to close about 1,200 locations over the next three years. About 500 stores will be closed this fiscal year and should immediately support earnings and free cash flow. Walgreens’ new fiscal year began in September.
It’s unclear how Chicago will be impacted by store closures, and at the time, Walggreens said their was no information to share. But they said the company plans to reassign the majority of employees from shuttered stores to new locations.
Walgreens lists 99 Chicago stores on its website. A North Lawndale store at 3401 W. Roosevelt Road is scheduled to close Nov. 12, according to social media posts last month by Ald. Monique Scott (24th).
The company operates about 8,500 stores in the U.S. and a few thousand overseas. All of the stores that will be closed are in the U.S.
Walgreens Boots Alliance Inc., the drugstore chain’s parent company, said in late June it was finalizing a turnaround plan in the U.S., which could lead to hundreds of store closings.
Walgreens' net loss swelled to more than $3 billion in the final quarter of the fiscal year, dragged down by U.S. retail and pharmacy sales. It also booked some hefty charges tied to opioid litigation settlements the company had recognized in previous quarters and an equity investment in China.
Walgreens lost a whopping $8.64 billion in the 2024 fiscal year, more than $10 per share for investors. The company expects adjusted earnings in the new fiscal year to fall between $1.40 and $1.80 per share, with growth in its U.S. health care and international businesses countering the U.S. retail pharmacy decline.
Contributing: AP