Ending Soon! Save 33% on All Access

Walgreens Names New CEO, Unveils $1 Billion Cost-Cutting Plan—Including 60 Clinic Closures Walgreens reported significant financial losses for its 2023 fiscal year, with operating losses reaching $6.9 billion.

By Madeline Garfinkle

Key Takeaways

  • Last week, Walgreens disclosed operating losses of $6.9 billion for the 2023 fiscal year.
  • Walgreens intends to cut back on spending by closing clinics, shutting down unprofitable stores, and adjusting in-store operating hours.

Opinions expressed by Entrepreneur contributors are their own.

Last week, Walgreens Boots Alliance, Inc. reported operating losses of $6.9 billion in its earnings report for the 2023 fiscal year ending on August 31, $6.8 billion of which the retailer says was related to opioid lawsuit claims and litigation.

Amid the losses, Walgreens is now unveiling an aggressive cost-cutting plan, including closing 60 of its clinics, Axios reported.

The company also stated that it faced challenges such as a weaker respiratory virus season, reduced COVID-19 vaccine demand, and a challenging economic environment for consumers, as acknowledged by its executives in an earnings call.

As part of the cost-cutting measures, Walgreens will close 60 VillageMD clinics and unprofitable stores (the number of stories is not provided), and make adjustments to in-store operating hours based on local market trends.

On the corporate level, the company added it is suspending nonessential projects and requiring all remote workers to return to the Deerfield, IL office by the end of November.

Related: Walgreens' Battle Over High-Tech Cooler Doors Heats Up

The company has also been grappling with fierce competition from CVS Health, Walmart, and Amazon, all of which are focusing on expanding its primary care services.

"Walgreens has lost customer share in areas like beauty and personal care. Some of this is because prices remain too high and are uncompetitive – something more and more shoppers won't tolerate in the current environment," GlobalData Managing Director Neil Saunders told Reuters.

In the wake of the cost-cutting news, Walgreens shares surged by 7%, Axios added.

Walgreens Names New CEO

Walgreens also appointed healthcare industry veteran Tim Wentworth as CEO last week.

Wentworth was the CEO of pharmacy benefit management company, Express Scripts, and an executive at Cigna. He'll lead efforts to diversify Walgreens' healthcare services, Reuters reported.

The decision comes almost two months after former CEO Roz Brewer resigned after a little over two and a half years on the job. Ginger Graham, lead independent director at Walgreens, had been working as the interim CEO.

Wentworth retired in 2021 but ultimately decided to re-enter the workforce to take on the role of Walgreens' first-in-command.

"What made me decide to come back was a chance to lead this iconic brand and company at a time when it's not in a steady state," Wentworth told CNBC.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Now that OpenAI's Superalignment Team Has Been Disbanded, Who's Preventing AI from Going Rogue?

We spoke to an AI expert who says safety and innovation are not separate things that must be balanced; they go hand in hand.


What Franchising Can Teach The NFL About The Impact of Private Equity

The NFL is smart to take a thoughtful approach before approving institutional capital's investment in teams.

Employee Experience & Recruiting

Beyond the Great Resignation — How to Attract Freelancers and Independent Talent Back to Traditional Work

Discussing the recent workplace exit of employees in search of more meaningful work and ways companies can attract that talent back.

Business News

Scarlett Johansson 'Shocked' That OpenAI Used a Voice 'So Eerily Similar' to Hers After Already Telling the Company 'No'

Johansson asked OpenAI how they created the AI voice that her "closest friends and news outlets could not tell the difference."

Business Ideas

Struggling to Balance Your Business and Your Relationship? This Company Says It Has a Solution.

Jessica Holton, co-founder and CEO of Ours, says her company is on a mission to destigmatize couples therapy so that people can be proactive about relationship health.


Marketing Campaigns Must Do More than Drive Clicks — Here's How to Craft Landing Pages That Convert Clicks into Customers

Following fundamental design principles will ensure that your landing pages lead potential customers from clicking on an ad to completing a purchase.