Walgreens, one of the leading U.S. drugstore chains, is implementing a significant restructuring that involves the elimination of 256 jobs at its support centers, including the corporate offices located in Deerfield and even the former post office. These decisions are accompanied by the elimination of 215 vacant positions. The move comes as the company had already made cuts in May, laying off 504 employees, equivalent to approximately 10% of its company-wide workforce. This change reveals Walgreens’ intention to focus on its core retail pharmacy business, in response to a business environment that has been increasingly challenging and volatile.
Walgreens spokesman Fraser Engerman said that despite the difficulty of these decisions, it is crucial for the company to adapt and respond quickly to the changing market landscape in order to better serve the millions of patients and customers who rely on its services. The company also pledged to offer support to laid-off employees, including outplacement assistance and severance pay. This support strategy is an attempt by the company to moderate the social impact of its decisions and maintain a good relationship with its workers, while trying to control costs and improve operational efficiency.
In an effort to improve its financial situation, Walgreens also announced plans to close about 1,200 stores over a three-year period, including the immediate closure of about 500 stores during the current fiscal year. This decision is part of a strategy to reduce costs and improve the cash flow of the company, which has experienced significant losses in its recent financial results. Despite the uncertainty surrounding the concrete impact of these closures in Chicago, the company assured that it is working to reassign the majority of the affected employees at the closed locations to new stores.
Walgreens has had to deal with economic challenges of late, with a net loss exceeding $3 billion in the last quarter of the fiscal year, increased by problems regarding sales at its pharmacies and other legal charges linked to litigation. These difficulties are also reflected in its annual report, where the company recorded a total loss of $8.64 billion in fiscal year 2024. With optimistic expectations, Walgreens projects that adjusted earnings in the new fiscal year will range between $1.40 and $1.80 per share, with confidence that growth in its healthcare businesses and international operations can balance the clear decline in the retail pharmacy sector in the US.
This scenario highlights how the retail industry, and especially the pharmaceutical industry, is being forced to adapt to new market realities, where operational efficiency and responsiveness to change have been crucial to long-term survival and growth. Walgreens’ decisions, while difficult, reflect an attempt to reposition the company in a constantly evolving market, seeking not only to meet its immediate financial needs but also to build a stronger foundation for the future.
How Walgreens was born in the United States?
Walgreens was founded in Chicago in 1901, Walgreens is the second largest pharmacy chain in the United States. Its headquarters are located in Deerfield, Illinois. Walgreens specializes in the sale of health and wellness products, photography services, health information and prescription products.
Walgreens started as a neighborhood pharmacy and later became a chain with sales within the United States of up to 117,351 million dollars.
