Walgreens to Lay Off 504 Employees in Corporate

Walgreens Boots Alliance Inc. (WBA) announced on Friday that it would be laying off 504 employees from its corporate workforce. The layoffs, which account for 10% of the company’s corporate workforce, are part of a larger restructuring effort as Walgreens moves to focus on patient care.

The layoffs will affect employees across all levels and functions, and will be concentrated in the company’s headquarters in Deerfield, Illinois, and its Chicago office. Walgreens said it would provide severance packages and outplacement assistance to affected employees.The reduction of 504 positions accounts for approximately 10% of the corporate workforce. Notably, none of the affected employees will be those working in stores, microfulfillment centers, or call centers, as clarified by Fraser Engerman, the spokesperson for the Deerfield-based company.

Engerman emphasized that the decision to downsize stems from Walgreens’ ongoing transformation into a consumer-centric healthcare enterprise. The company aims to align its organizational structure and streamline operations to better serve its patients and customers. In an email sent to employees, CEO Rosalind Brewer conveyed that these workforce adjustments are necessary for driving sustainable cost savings and facilitating investments for future growth. Although challenging, these changes will ultimately enable Walgreens to unlock value and support its long-term goals.

We are committed to keeping offices in Deerfield and Chicago,” said Marty Maloney, a Walgreens spokesman. “These changes are necessary to streamline our business, unlock value, and support our long-term goals.”

The layoffs in the drugstore industry are a sign of the challenges that the industry is facing. As competition intensifies, drugstore chains are under pressure to cut costs and find new ways to compete.