Pharmacy chain Walgreens plans to close 150 of its locations in the US and another 300 in the UK.
This continues ongoing cost-cutting initiatives at the company, including the elimination of more than 500 company jobs, Walgreens Boots Alliance executive vice president and global chief financial officer James Kehoe said on Tuesday. of the company’s third quarter earnings call.
The company did not announce which sites will be closed and did not immediately respond to a USA TODAY request for comment. Closings are expected to occur before the end of Walgreens’ 2024 fiscal year in May 2024.
Store closures are just some of the company’s cost-cutting measures, which come as Walgreens reported net income of $118 million, about 59% lower than a year earlier, and n fell short of earnings expectations, according to analysts polled by S&P Global Market Intelligence.
Walgreens also lowered its full-year earnings forecast. But the company expects to have saved $3.3 billion by the end of 2023 and another $800,000 in 2024, Kehoe said, according to a transcript of the earnings call from S&P Global Market Intelligence.
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Weaker-than-expected demand for COVID-19 vaccinations – 800,000 vaccinations in the quarter represented an 83% drop from a year ago – and sharp declines in COVID-19 testing contributed to the performance of company, said Rosalind Gates Brewer, CEO of Walgreens Boots Alliance, on the call. .
“We had called COVID as a wildcard heading into the trimester and unfortunately saw less patient willingness to vaccinate,” she said.
The company is now lowering its expectations for the number of COVID-19 vaccines it will distribute in the future. Additionally, Brewer said the company currently has 1,100 locations with reduced hours, up from 1,600 at the end of May.
The company expects to face “emerging challenges” such as lower consumer spending as stimulus funds end and student loan repayments resume, Brewer said.
Walgreens stock closed Friday down about 10% since the company’s earnings announcement.
Kate Perez covers the latest news and trends for USA TODAY. You can reach her at kperez@gannett.com or on Twitter @katecperez_.
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This article originally appeared on USA TODAY: Walgreens closing 150 US pharmacies as part of cost-cutting strategy