Natalia Chi
Walgreens will cut 504 corporate jobs, about 10% of the workforce at the retail pharmacy giant, the company confirmed late Thursday.
The jobs affected are primarily in Walgreens’ Deerfield and Chicago offices. These roles represent approximately 1% of all US employees.
“As we continue to transform our business into a consumer-centric healthcare company, we are focused on adjusting our structure and streamlining our operations to best serve our patients and customers,” said Wal. Greens said in a statement Thursday night.
Walgreens said in a statement that none of the affected employees are based in stores, micro-fulfillment centers or call centers. “We appreciate the many contributions of our team members leaving our organization and are committed to supporting them wherever possible during this transition.”
A Walgreens spokesperson said the company’s Deerfield and Chicago offices will remain open and the company is committed to maintaining its presence in Deerfield and downtown Chicago locations.
The job cuts come as Walgreens seeks to address the aftermath of an opioid-related settlement and further position itself as a healthcare destination to compete with rivals CVS Health and Amazon. rice field.
Walgreens reported a net loss of $3.0 billion in the first half of the year due to an after-tax charge of $5.4 billion from opioid-related claims and litigation.
Late last year, Illinois and a number of other states reached a $10.7 billion settlement agreement with Walgreens and CVS after allegations that they contributed to the opioid epidemic by failing to properly oversee opioid dispensing in stores. reached. Walgreens did not admit any liability or wrongdoing as part of the settlement.
The city of San Francisco announced last week that it had reached a $230 million settlement with Walgreens after a federal judge last year found Walgreens responsible for contributing to the San Francisco opioid epidemic. .
Walgreens has also expanded its healthcare offerings in recent years. Walgreens has invested billions in Chicago-based Village MD, which has primary care clinics next to Walgreens stores across the country. Walgreens said it plans to increase the number of Village Medical Clinics in its stores to 1,000 by 2027.
Walgreens and rival CVS are vying to strengthen their healthcare businesses. CVS recently signed a $10.6 billion deal to acquire Chicago-based Oak Street Health, which provides primary care to Medicare participants in centers across the country.
The Chicago Sun-Times first reported news of the layoffs on Thursday night.
