US pharmacy retailer Walgreens is eliminating more than 600 roles across the country under post-acquisition restructuring.
According to a Bloomberg report, the reductions include 469 positions in Illinois and 159 in Texas.
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The cuts come as private equity owner Sycamore Partners moves forward with cost-cutting after last year’s takeover.
The Illinois-based chain notified state authorities of the layoffs through letters sent earlier this month.
The plans include shutting a distribution centre in Texas, resulting in 159 job losses.
Sycamore’s acquisition followed several years of weakening profitability at Walgreens.
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By GlobalDataThe business has contended with intensifying competition in front-of-store retail from online sellers and discount chains, alongside reduced insurance reimbursement for prescription medicines, weighing on revenue.
Since the takeover, the private equity owner has introduced cost-reduction measures such as workforce cuts and the removal of paid holidays for some staff while aiming to lift store sales by adding items, including electronic cigarettes.
After acquiring Walgreens, Sycamore reorganised the company into five independently operating units, specifically The Boots Group, CareCentrix, Shields Health Solutions, VillageMD and Walgreens.
The report cited a letter from a Walgreens representative to the Illinois Department of Commerce and Economic Opportunity regarding the layoffs, stating: “Walgreens is reorganising several areas of the business to best position the company for growth and deliver results where they matter most: in our stores and with our customers and patients.”
Retail Insight Network has contacted Walgreens for comment.
Separately, Walgreens opened a micro-fulfilment centre in Brooklyn Park, Minnesota, in May last year to support prescription dispensing and shipping.
The facility was designed to speed up prescription processing and reduce administrative workload for pharmacists, and is expected to handle 13 million prescriptions each year.
Walgreens said the Brooklyn Park site will support 200 stores across the Midwest, including 145 locations in Minnesota.
