• Walgreens Boots Alliance (WBA) lays off hundreds of corporate employees as part of cost-cutting measures following its $10 billion acquisition by private equity firm Sycamore Partners in August 2025.
  • The latest cuts include 80 corporate workers in Chicago and Deerfield, Ill., in October 2025, building on prior reductions like 504 jobs in May 2023 and multiple rounds in 2024 totaling over 1,200 positions.
  • Post-acquisition, Walgreens split into five private entities, with Sycamore appointing former Staples CEO Mike Motz to replace Tim Wentworth, signaling aggressive restructuring similar to Staples' one-third store closures.

Walgreens Boots Alliance is slashing hundreds of corporate roles in a sweeping effort to streamline operations and curb expenses, according to people familiar with the matter. The move comes just months after private equity giant Sycamore Partners finalized its $10 billion takeover of the retail pharmacy chain, a deal that has triggered a wave of restructuring aimed at shoring up margins amid a decade-long stock slump and intensifying competition.

The latest reported cuts, which affected 80 corporate employees in Illinois in October 2025, are part of a broader pattern of layoffs that have unfolded since 2023. Earlier rounds included 504 job eliminations in May 2023 and multiple reductions in 2024 totaling over 1,200 positions, as the company works toward a $1 billion operating expense cut target announced that year. Efforts to reach Walgreens for comment on the specific October figures were unsuccessful, but internal communications reviewed by sources indicate more restructuring is expected in 2026.

Under Sycamore's ownership, Walgreens has been split into five private entities, with former Staples CEO Mike Motz taking the helm from Tim Wentworth. Motz's appointment signals a shift toward aggressive cost-cutting, mirroring his prior approach at Staples, where he oversaw the closure of about one-third of stores. "We're focused on creating a leaner, more efficient organization to better serve our customers and communities," a company spokesperson said in a paraphrased statement, though they declined to provide specifics on future layoffs.

The restructuring extends beyond corporate offices, impacting hourly store workers through measures like the elimination of paid holidays and a plan to close approximately 1,200 locations. These moves have drawn criticism from stakeholders, including pharmacy unions and nonprofits like the Private Equity Stakeholder Project, who argue that private equity-driven cuts could exacerbate staffing shortages and medication errors in underserved areas. Without a deal to balance cost reductions with patient care, some experts warn the company risks deepening "pharmacy deserts" in rural and low-income communities.

Financial pressures have mounted for Walgreens, with declining reimbursement rates and rising competition from players like Amazon Pharmacy (AMZN), which has expanded same-day delivery to over 4,500 areas. The company also faces ongoing costs from opioid lawsuit settlements, including a $4.95 billion nationwide agreement over 15 years. In response, it has invested in growth areas such as micro-fulfillment centers and primary care through VillageMD, but margins remain tight.

As of late 2025, Walgreens operates about 8,000 U.S. stores, down from 8,500 pre-acquisition, and employs roughly 211,000 people, a reduction from 220,000. The layoffs and store closures reflect broader trends in the retail pharmacy sector, where chains are pivoting toward cost efficiency amid shifting consumer habits. With Motz at the helm, analysts predict accelerated restructuring in the short term, potentially mirroring Staples' scale of job cuts, while long-term outlooks point to risks like bankruptcy from debt-heavy buyout structures unless offset by strategic expansions.

Correction: An earlier version of this article misstated the total number of layoffs in 2024; it has been updated to reflect over 1,200 positions across multiple rounds.