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Walgreens is set to lay off 256 employees in its latest move to cut costs in a year that’s seen the retail pharmacy giant’s shares plummet 63%, company spokesperson Fraser Engerman confirmed in an email to Healthcare Brew.
The move comes just more than two weeks after Walgreens reported a $3 billion loss in its Q4 earnings—bringing the total year’s net loss to $8.6 billion, a 180% increase compared to 2023—and executives announced plans to close 1,200 stores over the next three years.
“While decisions like these are always difficult, we believe this action is necessary to position us to rapidly respond to the changing external environment so we can best serve the millions of patients and customers who depend on us every day for their healthcare needs,” Engerman said in the email.
He added that the layoffs will allow Walgreens to further focus on its core retail pharmacy business. All affected employees worked in support center roles and will receive severance and outplacement support, he said.
In August, Walgreens executives also revealed they’re considering selling VillageMD, the company’s primary care subsidiary that it purchased for $5.2 billion in 2021.
Walgreens has announced a string of layoffs this year. The company cut 145 mostly corporate roles in January, Supermarket News reported at the time. Then in March, the outlet reported the company cut another 646 roles after closing two distribution centers in Florida and Connecticut. In April, Walgreens cut an undisclosed number of roles, the Chicago Tribune reported.