National Chain Store Plans to Layoff Hundreds of Illinois Workers
Hundreds of Jobs to Be Cut in Illinois
This latest round of layoffs adds to a series of workforce reductions in recent years, further highlighting the Illinois-based retailer’s ongoing financial difficulties.
Walgreens Boots Alliance, headquartered in Deerfield, Illinois, confirmed Wednesday it will lay off 256 corporate employees, most of whom are based in Chicago.
Over 1,200 Locations Closing in the Next 3 Years
Earlier this month (October 2024), Walgreens announced they would shut down more than a thousand stores within the next 3 years.
Read More: Illinois-Based Walgreens Closing 1200 Stores in Next 3 Years
According to a report from Supermarket News, this decision comes due to a challenging retail landscape, as the pharmacy giant aims to stabilize its operations and improve profitability.
A Response to Financial Pressures
In a statement given to Supermarket News, Walgreens spokeswoman Megan Boyd acknowledged the difficulty of the decision but stressed its necessity for the company’s financial realignment.
“This action is necessary to position us to rapidly respond to the changing external environment,” Boyd said. Walgreens, which is working to stabilize its core retail pharmacy business, also announced the elimination of 215 unfilled positions.
Impacted employees will receive severance and outplacement support, according to Boyd.
Focus on Retail Pharmacy Turnaround
Walgreens CEO Tim Wentworth has outlined a strategic focus on cost control to stabilize the retail pharmacy giant.
During an earnings call earlier this month, Wentworth emphasized efforts to “address reimbursement models to support dispensing margins,” indicating Walgreens’ pivot back to its pharmacy roots.
The company has also reversed a previous plan to add Village Medical clinics to 1,000 stores, opting instead to sell all or part of its VillageMD stake to manage costs, according to the Supermarket News report.
Financial Losses Drive Drastic Cuts at Illinois-Based Chain
Walgreens reported an $8.6 billion net loss year-to-date—a 180% increase over the previous period—prompting its plans to shutter 1,200 U.S. stores over the next three years.
This represents about 14% of its retail footprint. Following years of poor financial results, the company is pressing forward with a $1 billion cost-cutting initiative to recover.
These layoffs and closures at Walgreens show how aggressively the chain is moving to compete with other major chain stores in Illinois and across the country.
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