US pharmacy retailer Walgreens will cut more than 600 jobs nationwide in a post-acquisition restructuring.
according to a Bloomberg Job cuts include 469 positions in Illinois and 159 positions in Texas, the report said.
The layoffs come as private equity firm Sycamore Partners continues its cost-cutting drive following an acquisition last year.
The Illinois-based chain sent layoff notices to state authorities earlier this month.
The plan includes closing a distribution center in Texas, resulting in 159 job losses.
The Sycamore acquisition follows years of declining profitability at Walgreens.
The business faces increased in-store retail competition from online sellers and discount chains, as well as reduced insurance reimbursements for prescription drugs, weighing on revenue.
Since the acquisition, the private equity owner has taken cost-cutting measures, such as laying off employees and eliminating paid leave for some employees, while aiming to boost store sales by adding merchandise including e-cigarettes.
After acquiring Walgreens, Sycamore restructured the company into five independently operating divisions: The Boots Group, CareCentrix, Shields Health Solutions, VillageMD and Walgreens.
The report cites a letter from a Walgreens representative to the Illinois Department of Commerce and Economic Opportunity regarding the layoffs, which states: “Walgreens is restructuring multiple areas of the business to best position the company for growth and deliver results where it matters most: in our stores and with our customers and patients.”
Retail Insights Network Walgreens has been contacted for comment.
Separately, Walgreens opened a micro-fulfillment center in Brooklyn Park, Minn., last May to support prescription filling and shipping.
Designed to speed prescription processing and reduce pharmacists’ administrative workload, the facility is expected to process 13 million prescriptions annually.
Walgreens said the Brooklyn Park store will support 200 stores in the Midwest, including 145 stores in Minnesota.
“Walgreens to Cut More than 600 Jobs Across America – Report” was originally created and published by Retail Insight Network, a brand of GlobalData.
The information on this website is included in good faith and for general information purposes only. It does not constitute advice on which you should rely and we make no representations, warranties or guarantees, express or implied, as to its accuracy or completeness. You must obtain professional or expert advice before taking, or refraining from, any action based on the content on our website.
