The national pharmacy chain Walgreens is eliminating more than 600 positions throughout the country after its recent acquisition by private equity company Sycamore Partners, according to a Bloomberg News report published Thursday that referenced internal company correspondence.
According to the report, the pharmacy giant is eliminating 469 positions in Illinois while planning to cut an additional 159 jobs in Texas, where the company is shutting down a distribution facility.
Reuters reached out to Walgreens for a statement but did not receive an immediate response.
The struggling retail chain was purchased by the private equity firm for $10 billion in 2024, following a series of expensive strategic errors and intense competition from discount competitors like Amazon and Walmart that pressured profit margins.
According to the Bloomberg report, Sycamore Partners intends to reduce operational expenses through workforce reductions and eliminating paid holiday benefits for certain workers, while simultaneously working to increase store revenue by introducing new merchandise like electronic cigarettes.
The private equity company focuses on retail and consumer sector investments and has a history of purchasing struggling retail businesses for financial gain, with previous acquisitions including well-known brands like Staples, Talbots, and Nine West.
