The Walgreens pharmacy chain announced that it will close some 150 stores in the United States and 300 more locations in the United Kingdom, according to information published by CNN.
James Keho, who is chief financial officer of Walgreens Boots Alliance, made the announcement on the company’s earnings call this week.
Given an economic environment that has been characterized by massive layoffs, the pharmaceutical chain reported a reduction in its income compared to the same quarter last year.
Walgreens said it earned revenue of $118 million and 14 cents a share, compared with $289 million and 33 cents a share, from last year.
In 2023, the company said it faces subdued consumer spending and a pullback in demand for Covid vaccines.
Rosalind Brewer, CEO of Walgreens, noted that the company is determined to increase its cost savings to $4.1 billion and is taking steps to optimize profitability in its US healthcare segment.
The company told analysts that the pharmaceutical chain expects to save about $3.3 billion by the end of 2023 and that it plans to eliminate spending of at least $800 million in 2024, and that the branch closures are part of its effort to reduce costs.
Walgreens currently has about 9,000 stores in the United States, of which it plans to close 150 by the end of the next fiscal year, according to a spokesperson.
It has also cut 500 jobs, representing 10% of its US office workforce, and made it clear that technology and its plans to build the “pharmacy of the future” will further boost savings.
Since the end of last year, many companies have been resorting to cuts and adopting measures that allow them to meet their financial goals.
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