Walgreens is expected to close 150 drugstores in the United States and another 300 in the United Kingdom, according to Drugstore News. By providing a message about the closure James KehoeChief Financial Officer, during the third quarter 2023 earnings conference call.
Kehoe pointed out that capital allocation priorities are focused on core business investments, debt servicing and retail dividends. “We will continue to make disciplined, revenue-based organic investments in our core business,” he added.
“We’re streamlining our portfolio to unlock more value and provide financial flexibility. We’re very committed to maintaining our investment grade rating and our dividend. Now, let’s take a quick look at the transformational cost management plan. We’re raising the total savings target to $4.1 billion by 2024. The sixth goal from the beginning is to increase.
Walgreens projects $800 million in savings
Walgreens expects savings of at least $800 million by 2024, Kehoe said, and corporate restructuring cost-cutting efforts include repositioning its headquarters to better align its resources with its strategic priorities. “This led to the elimination of more than 500 roles, representing approximately 10% of our US corporate and support office workforce,” the executive says.
The pharmacy of the future, noting that Walgreens’ operating model will generate significant savings, Kehoe said the company is leveraging this model through its micro-fulfillment centers, in-store operations and telepharmacy solutions. “These initiatives will elevate the role of the pharmacist and improve patient engagement,” he added.
