Walgreens will be closing 200 stores nationwide as part of a plan to cut costs by $1.5 billion.
As of last year, Walgreens operated approximately 9,560 drug stores and employed 240,000 employees, according to its website. The company is calling the closures a “transformational cost management program.”
Earlier this year, Walgreens closed another 200 stores in the United Kingdom as part of the reorganization.
No specific store locations were detailed in a filing with the United States Securities and Exchange Commission. A full list is expected to be released before the stores begin closing in the fall.
In December last year, Walgreens announced it would seek to take action in an effort to cut costs by 2022. The “transformational cost management program” is expected to save the company more than a billion dollars.
Walgreens acquired 2,000 Rite Aid stores in 2017 for more than $4 billion, and is planning to close as many as 750 of them. The company has also cut bonuses for store managers and other employees, and some have seen benefits eliminated.
In June Walgreens reported a 24% decline in quarterly net income and predicted that annual earnings would be roughly flat with the prior year.
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