Walgreens Lays Off 250 Employees, Primarily in Chicago

Walgreens Boots Alliance has announced the layoff of 256 corporate employees, primarily based in Chicago, as part of ongoing efforts to address financial challenges. This move comes alongside the company’s decision to eliminate 215 open positions and follows a trend of workforce reductions in recent years.

Megan Boyd, a Walgreens spokesperson, stated that these layoffs, while difficult, are necessary to enable the company to better respond to changing market conditions and to sharpen its focus on its core retail pharmacy operations. The company is offering severance and outplacement support to affected employees.

This announcement coincides with Walgreens’ plans to close approximately 1,200 stores in the U.S. over the next three years, representing about 14% of its locations. In a recent earnings call, CEO Tim Wentworth emphasized the need to stabilize the retail pharmacy segment by managing operating costs and enhancing cash flow, while also revising its approach to integrating Village Medical clinics, moving towards selling all or part of its VillageMD business.

The retailer has faced significant financial difficulties, reporting a net loss of $8.6 billion, an increase of 180% compared to the previous year, largely due to higher operating losses. Over the past few years, Walgreens has laid off more than 1,000 workers, predominantly in corporate roles, as part of a broader strategy to cut costs by $1 billion in response to declining financial performance.