Walgreens cuts 145 workers, mainly from its corporate workforce

Walgreens Boots Alliance has cut another 145 workers, primarily from its corporate workforce, the company confirmed in an email to Supermarket News. 

Walgreens spokesman Fraser Engerman said that while the Deerfield, Ill.-based company “continues to progress on reducing costs and delivering on our commitments to be the independent healthcare provider of choice, we still have significant cost savings and growth goals to deliver.”

Engerman noted that the layoffs impact a range of departments within the company, but he but did not give details. “We are committed to supporting them with severance and outplacement services during this difficult time,” he added. 

The layoffs come less than three months after the company cut 5% of its corporate workforce, a staff reduction of 267 positions. The cuts follow Walgreens’ decision to lay off more than 500 high-ranking employees in May of 2023 and to close an ecommerce center in Illinois that resulted in the elimination of another 400 positions. 

The company has faced a tumultuous year with the staff cuts, high debt, and the departure of CEO Rosalind Brewer after less than three years in the role.

Walgreens made headlines on Jan. 24 with a report from Crain’s Chicago Business noting that the company is considering selling Shields Health Solutions for as much as $4 billion. Engerman declined to comment on the potential sale. 

It’s among the broad range of efforts Walgreens is taking to shore up its finances. In early January, the company cut its quarterly dividend by 48% to 25 cents per share. Walgreens CEO Tim Wentworth said in a letter to investors on Jan. 4 that “we have been evaluating our options across our strategies and operations, including those related to our capital allocation.” 

“We have made the difficult decision to reduce our quarterly dividend payment to 25 cents per share, to strengthen our long-term balance sheet and cash position,” Wentworth added. “This action reinforces our goal of increasing cash flow, while freeing up capital to invest in sustainable growth initiatives in our pharmacy and healthcare businesses, which we believe will ultimately improve shareholder value.”