Walgreens Boots Alliance (NASDAQ:WBA) has confirmed that it is slashing around 10% of its corporate staff, primarily affecting employees stationed at its Deerfield headquarters and Chicago office. The downsizing translates to 504 corporate employees losing their jobs. However, the company’s spokesperson, Marty Maloney, emphasized that the layoff would not affect workers at Walgreens’ stores, micro fulfillment centers, or call centers.
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Despite the company registering a net loss of $3 billion in the first half of Fiscal Year 2023, largely due to a hefty $5.4 billion after-tax charge for opioid-related claims and litigation, Maloney dismissed any connection between the layoffs and the company’s financial woes. Instead, the job cuts are part of a broader initiative aimed at driving long-term cost savings, which will then be funneled toward future growth investments. This strategy was detailed in a memo from CEO Rosalind Brewer to the company’s employees, according to a report from Sun-Times.
Turning to Wall Street, analysts have a Hold consensus rating on WBA stock based on two Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $39.91 per share implies 33.93% upside potential.
