Walgreens' Profit Drive: Employee Cuts Amid Transformation to Consumer Healthcare

Walgreens Boots Alliance, Inc WBA plans to slash 504 employees from its corporate workforce as the drugstore chain transforms into a consumer-centric healthcare company.
The downsizing account for 10% of the corporate workforce, and none of the workers will be based at stores, micro fulfillment centers, or call centers, Bloomberg cites the company spokesman Fraser Engerman.
Walgreens has been adding primary-care centers to U.S. locations and collaborating with health insurers.
It acquired specialty and urgent care provider Summit Health-City MD in 2022 for $8.9 billion to drive profit in the U.S. healthcare segment.
In March, Walgreens reported Q2 FY23 sales growth of 3.3% Y/Y to $34.9 billion, up 4.5% on a constant currency basis, beating the consensus of $33.53 billion.
Adjusted EPS reached $1.16, unchanged from Q1 FY23, beating the consensus of $1.10.
Adjusted operating income was $1.2 billion, down 25.4% on a constant currency basis, reflecting lower COVID-19 vaccinations and testing volumes.
Price Action: WBA shares traded lower by 0.22% at $29.91 on the last check Friday.
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