Walgreens announced that it expects to close 450 locations as part of its cost-cutting measures.
CNN reports the company expects to close 150 locations in the United States and 300 locations in the United Kingdom.
Walgreens Boots Alliance CFO James Kehoe said during an earnings call last week that the chain reported lower earnings compared to the same quarter the previous year. Walgreens reported a net income of $118 million, down about 59% from the prior year.
Kehoe said they plan on saving $3.3 billion by the end of the year and “at least” $800 million next year. The chain also eliminated more than 500 positions as part of cost-saving initiatives.
“We are optimizing the model through our micro fulfillment centers, tech-enabled centralization of in-store activities, and telepharmacy solutions,” he said.
The company’s earnings were impacted by less consumer spending and a drop in demand for COVID vaccines.
“We had called out COVID as a wildcard heading into the quarter and have unfortunately seen less patient willingness to vaccinate,” CEO Rosalind Gates Brewer said.
The company operates almost 9,000 locations in the U.S. and did not specify which stores will be closing. The locations are expected to shutter their doors by the end of August 2024.
