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Walgreens Boots Alliance to cut 10 percent of corporate workforce

By Nithya Bose in US business news, posted May 29, 2023

Walgreens Boots Allianceis is cutting 504 corporate jobs, which accounts for approximately 10 percent of its corporate workforce.

The majority of the cuts will be made at its offices in Deerfield and Chicago.

However, the impacted roles constitute only about one percent of the company's overall US workforce.

The retail pharmacy giant said the job cuts are part of its transformation into a consumer-centric healthcare company.

The company aims to align its structure and streamline operations to serve patients and customers better.

It said the affected employees are not from store locations, microfulfillment centers, or call centers.

The company expressed gratitude for the contributions made by the departing team members and pledged support during the transition.

Walgreens said that both its Deerfield and Chicago offices will continue operations, emphasizing its commitment to maintaining a presence in those locations.

The layoffs come at a time when Walgreens faces challenges related to opioid-related settlements and intensified competition with rivals CVS Health and Amazon.

In the first six months of this fiscal year, Walgreens reported a net loss of $3 billion, largely due to a $5.4 billion after-tax charge for opioid-related claims and litigation.

Recently, the retail chain reached a $10.7 billion settlement agreement with Illinois and several other states over allegations of contributing to the opioid epidemic.

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Last week, the company also settled with San Francisco for $230 million after being found liable for its role in the opioid crisis.

To strengthen its healthcare offerings, Walgreens has invested significant funds in VillageMD, a Chicago-based primary care clinic provider with clinics located adjacent to Walgreens stores nationwide.

Walgreens plans to expand the number of Village Medical clinics to 1,000 by 2027.

Both Walgreens and CVS have been actively expanding their healthcare businesses.

CVS recently finalized a $10.6 billion deal to acquire Oak Street Health, a Chicago-based company offering primary care services to Medicare beneficiaries across the country.

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