Pharmacy Chain to Cut 256 Jobs, Majority in Chicago Area

Sure thing, here’s how a New Yorker might spin this Walgreens headline.

Walgreens: Putting the ‘The Big Squeeze’ in the Windy City

Hey, have you heard? Walgreens Boots Alliance is, once again, tightening its belt and Chicagoans are feeling the pinch. They’re laying off a cool 256 employees. It seems like every year, the ax swings again, and this time? It’s mostly in Chicago. Talk about a rough few years!

Taking Aim at Costs

Everyone knows, running a business ain’t easy. Costs pile up faster than snow in January. So, what’s a Walgreens to do? Cut costs and zero in on the retail pharmacy department. Fraser Engerman, the spokesman with an email-sized statement, says they’re eliminating 215 spots that were just collecting dust. A strategic move? Sure. Kind to the workforce? Not exactly.

“While decisions like these are always difficult, we believe this action is necessary to respond to the changing environment,” explains Engerman. Ah, the “changing environment”—the most polite way to say "we’re in hot water."

But here’s the kicker: Walgreens walked away from that grand plan to attach Village Medical clinics to a thousand stores. Instead, they’re thinking of selling off some of their VillageMD business. Who saw that one coming?

Store Closures and Financial Woes

Earlier this month, Walgreens didn’t just stop at layoffs. They shook up Wall Street by announcing plans to close 1,200 stores—14% of their U.S. locations—over the next three years. The strategy? Streamlining operations to make the stores that remain much stronger contenders.

Year after year, the Empire State also sees its share of losses via store closures. Cost-cutting isn’t new; they surpassed their $1 billion savings target last fiscal year. However, it seems there’s no end in sight for their financial challenges.

Financial Snapshot

Challenges Ahead

But wait, there’s more! The recent fiscal quarter wasn’t rosy either. Between June and August, Walgreens reported a whopping $978 million operating loss. For perspective, that’s up from a $450 million loss the previous year. Ouch! Clearly, turning the tide will take more than a couple of aspirin.

For now, the saga continues. Walgreens is pulling out all the stops to stay afloat, aiming to be the savior many depend on for their daily health needs. New Yorkers have their fingers crossed, hoping the company keeps those Big Apple storefronts open. Because if there’s one thing New Yorkers can’t live without, it’s convenience—found stocked on those Walgreens shelves.

Originally Published: October 29, 2024 at 2:03 PM CDT.