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

• Walgreens Boots Alliance, Inc (NASDAQ: 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.

• Photo via Wikimedia Commons

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article Walgreens' Profit Drive: Employee Cuts Amid Transformation to Consumer Healthcare originally appeared on Benzinga.com

.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.