Walgreens To Cut 10 Percent of Corporate Workforce — Retail Bum

Walgreens Boot Alliance is laying off 10% of its corporate workforce as it looks to put focus on its healthcare division.

The layoffs, which are expected to impact some 504 workers, will not affect any workers supporting Walgreens’ store operations, micro-fulfillment centers, or call centers.

“As we continue to transform our business into a consumer-centric healthcare company, we are focused on aligning our structure and streamlining our operations to best serve our patients and customers,” said Walgreens spokesperson Fraser Engerman.

Walgreens CEO Roz Brewer noted that the layoffs are part of the company’s effort to cut back on costs through initiatives such as consolidation of office space, reducing travel and cutting non-essential projects, as well as spending on consultants and contractors.

The news comes two months after the company reported $3 billion in net losses for the first half of fiscal 2023, with net earnings reaching $4.5 billion, the same as last year. The company’s financial standing was impacted by a $5.4 billion after-tac charge which it had to settle opioid claims and litigations. That said, Walgreens has denied any responsibility for fueling the opioid crisis.

Last week, Walgreens also disputed a $642 million arbitration award it was asked to pay to health insurance provider Humana over a drug price dispute.

Originally published at https://retailbum.com on May 31, 2023.