Walgreens to lay off 5% of corporate workforce

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Walgreens Boots Alliance is laying off 267 corporate employees, which represents 5% of that workforce,

"As we continue to streamline our operations and focus on our critical priorities to best serve our patients and customers we are making the difficult decision to eliminate 267 roles which account for 5% of our corporate workforce," Walgreens said by statement. "None of these roles are based at our stores. We are grateful for the many contributions by the team members who will be leaving our company and we are committed to supporting them as much as possible during this transition."

Personnel changes include the departure of Kevin Ban, chief medical officer, and Luke Sauter, chief of staff to the CEO, according to Seeking Alpha, citing a Bloomberg report and memo.

Chief Clinical Officer Sashi Moodley is reportedly set to replace Ban.

The moves are the latest leadership shakeups at the company. Former CEO Rosalind Brewer stepped down in August. New CEO Tim Wentworth was introduced during Walgreens' earning call in October.

Walgreens did not comment on the departures.

WHY THIS MATTERS

The moves and layoffs are part of a $1 billion cost-reduction initiative announced in October.

During the October earnings call, Walgreens said it planned to cut more than $1 billion in 2024 and to shutter 60 healthcare clinics in unprofitable markets.

Interim CEO Ginger Graham said the company also had plans to lower capital expenditures by approximately $600 million in 2024.

Financial challenges in the coming year include lower volumes of COVID-19 vaccinations and testing and shifting consumer spending patterns, the company said.

Walgreens also said it was mandating company leadership to return to the office.

THE LARGER TREND

The company reported fourth quarter operating losses of $450 million, compared to $822 million operating losses during the fourth quarter of 2022. 

Net loss in the fourth quarter was $180 million compared to a net loss of $415 million in the year-ago quarter. 

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org