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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

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

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