Final week, Walgreens Boots Alliance, Inc. registered working losses of $6.9 billion in its 2023 earnings report for the fiscal yr ending Aug. 31, which the retailer stated was associated to opioid lawsuits and litigation.
Amid the losses, Walgreens is now asserting an aggressive cost-cutting plan, together with closing 60 of its clinics, Axios experiences.
The corporate additionally stated it’s dealing with challenges reminiscent of a weaker respiratory virus season, lowered demand for a COVID-19 vaccine and a difficult financial atmosphere for customers, which its executives confirmed in an earnings name.
As a part of the cost-cutting measures, Walgreens will shut 60 VillageMD clinics and unprofitable shops (the variety of tales was not specified), and can regulate retailer hours primarily based on native market traits.
Corporately, the corporate added that it’s suspending non-essential tasks and requiring all distant employees to return to Deerfield, IL workplaces till the tip of November.
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The corporate additionally faces stiff competitors from CVS Well being, Walmart and Amazon, all of that are centered on increasing their major care companies.
“Walgreens has misplaced buyer share in areas like magnificence and private care. A few of that’s as a result of costs stay too excessive and uncompetitive – one thing that an increasing number of clients won’t tolerate within the present atmosphere,” GlobalData CEO Neil Saunders advised Reuters .
In gentle of the cost-cutting information, Walgreens shares rose 7%, Axios added.
Walgreens names new CEO
Walgreens named healthcare trade veteran Tim Wentworth as CEO final week.
Wentworth was CEO of the pharmacy profit administration firm, Specific Scripts, and an government at Cigna. He’ll lead efforts to diversify Walgreens’ well being companies, Reuters experiences.
The choice comes practically two months after former chief government Roz Brewer resigned after simply over two and a half years within the job. Ginger Graham, lead unbiased director at Walgreens, served as interim CEO.
Wentworth retired in 2021, however finally determined to re-enter the workforce to tackle the position of Walgreens’ first-in-command.
“What made me come again was the possibility to guide this iconic model and firm at a time when it is not going sturdy,” Wentworth advised CNBC.