Nationwide Retailer Closes Multiple Distribution Centers, Laying off Hundreds of Workers

In an effort to streamline operations and reduce costs, Walgreens Boots Alliance has announced the closure of two distribution centers located in Orlando, Florida, and Dayville, Connecticut.

This move will result in the layoff of 646 workers, as confirmed by Walgreens spokesperson Marty Maloney.

The decision to close these facilities comes as part of a larger cost-cutting initiative by the retail and pharmacy giant, which has been grappling with disappointing financial results and a declining stock price.

Maloney stated, “We are focused on aligning our operational structure to best serve our patients and customers. This includes an evaluation of our distribution center operations in order to streamline capacities to best support our stores.”

The affected employees will receive severance and separation pay, and the company has expressed gratitude for their contributions.

However, the loss of these jobs is likely to have a significant impact on the local communities.

Walgreens’ cost-cutting measures began in late 2022, with the company announcing plans to trim $1 billion in expenses by the second quarter of fiscal 2024.

These efforts have included reducing non-essential spending, optimizing the transportation network, and cutting hundreds of roles at its Deerfield corporate headquarters.

In addition to the distribution center closures, Walgreens has also shuttered all of its Village MD clinics in Florida and six in Illinois.

The company’s financial challenges have been further compounded by a high level of executive turnover, starting with the departure of former CEO Roz Brewer in September 2023.