US drugstore chain Rite Aid has announced it is planning to reduce managerial layers and consolidate roles across the organisation as part of its organisational restructuring, which could result in the loss of approximately 400 full-time jobs.

The move could affect more than 20% of the corporate positions at its headquarters and across the field organisation, with two-thirds of the cuts effective immediately and the remaining by the end of 2020, according to the retailer.

Rite Aid expects to achieve annual cost savings of approximately $55m, including $42m within the 2020 fiscal year. It also expects to incur a one-time restructuring charge of about $38m.

Chief executive officer John Standley will also step down as part of the company’s leadership transition plan. He will continue in his role until the appointment of his successor.

The company has also announced additional management changes, such as promoting Rite Aid stores chief operating officer Bryan Everett to the same role with Rite Aid Corporation, succeeding Kermit Crawford.

Rite Aid has also promoted chief accounting officer and treasurer Matt Schroeder to the role of chief financial officer, succeeding Darren Karst following his departure this spring.

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“It is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company.”

The retailer has also promoted its group vice president and controller Brian Hoover to the role of chief accounting officer, and pharmacy executive vice president Jocelyn Konrad as pharmacy and retail operations executive vice president. It also announced the departure of store operations executive vice president Derek Griffith.

Rite Aid is planning to consolidate additional senior leadership roles, which could result in the elimination of other positions.

Rite Aid board of directors chair Bruce Bodaken said: “Rite Aid’s Board of Directors is committed to more closely aligning the structure and leadership of the Company with our present scale and today’s announcement is an important step in positioning Rite Aid for future success.

“These are difficult decisions and we recognise the implications they have for individuals across our organisation. However, it is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company.

“The Board believes that now is the right time to undertake a leadership transition.

“We will be focused on recruiting a leader that will best position Rite Aid to create long-term value for shareholders. As we conduct the search process, John has agreed to stay until we appoint his successor. We thank John for his outstanding leadership in guiding the Company over the past several years. His leadership and expertise has been critical to ensuring the Company’s stability and success through an extremely challenging environment.

“In addition, we are confident that Bryan, Matt and our senior leadership team have the capabilities and experience necessary to effectively guide Rite Aid forward. On behalf of the Board, I want to thank Kermit, Darren, and all the other departing associates for their service and contributions to the Company.”