This latest round of layoffs is related to a $1 billion cost-cutting plan Deerfield-based Walgreens implemented last year under new CEO Tim Wentworth, who was largely brought in to right-size the struggling organization. Engerman said today's layoffs will “reduce complexity and consolidate work.”
“We value the contributions of impacted team members and will fully support them through this difficult time,” Engerman said.
Over the last year, Walgreens has laid off around 900 corporate employees in several batches and hundreds of others at e-commerce distribution centers it closed in Illinois and other states.
The retail, pharmacy and healthcare giant began minimizing costs at the end of last year after several quarters of lackluster performance and a dropping stock price as it struggles to fend off pressures on its traditional pharmacy and retail businesses as well as establish an entirely new healthcare delivery business.
Other cost-saving strategies the company has implemented include closing unprofitable or struggling stores, along with dozens of VillageMD clinics, and reducing store hours in locations that can accommodate it.
Cash flow problems hit a critical point in January, when the company cut its dividend by nearly 50%, to 25 cents per share. Walgreens stock is down 33% this year, trading at about $17.64.
This story first appeared in Crain's Chicago Business.
