Walgreens Cutting Costs By $1B Amid Continued Operating Losses

DEERFIELD, IL — Tim Wentworth, the new chief executive officer of Walgreens Boots Alliance, will need to help navigate the company's current financial woes when he begins in the role on Oct. 23. In its latest earnings report for the fourth quarter of 2023, the Deerfield-based company announced it will be implementing cost-cutting measures to the tune of at least $1 billion.

"Our performance this year has not reflected WBA's strong assets, brand legacy, or our commitment to our customers and patients," Interim CEO Ginger Graham said in a news release.

WBA, headquartered at 108 Wilmot Road, oversees 9,277 Walgreens and Duane Reade stores in the U.S.

According to the latest earnings report, fourth quarter operating loss for WBA was $450 million, compared to an operating loss of $822 million in the year-ago quarter.

Graham said WBA has taken steps in recent weeks to reduce overall costs, including lowering capital expenditures by $600 million. She said the company expects to see the "impact of these actions" in 2024, specifically beginning in the second quarter.

Wentworth, the former CEO of Evernorth (Cigna's health services platform), will take over for Rosalind Brewer, who left WBA in September after two years at the helm. Brewer made history for the company by becoming the pharmacy giant's first Black and first female chief executive officer ever. She also stepped down from WBA's board of directors.

RELATED: Brewer Steps Down As CEO Of Walgreens

"As we welcome [Wentworth], who brings deep healthcare experience and the skills needed to propel WBA forward, along with the support of the Board, I am confident in our company's future and the ability to deliver greater value to our customers, shareholders, partners, and employees," Graham said.

In July, WBA announced it was shutting down an e-commerce shipping center in Edwardsville, eliminating 400 positions. That move followed one a month earlier in which the company cut 504 corporate jobs and said it will be closing 150 Walgreens locations across the country by August 2024.

Those moves followed a dismal third-quarter earnings report with the company blaming a lower demand for COVID-related services, among other factors. A spokesperson told Patch at the time that the decisions would not close the WBA's Deerfield headquarters.

Also in June, Walgreens was named as one of the two pharmacies included in a $17.3 billion settlement that will pay out $518 million to Illinois over the next 15 years in a bipartisan effort to curb the opioid crisis.

RELATED: Walgreens Closing Distribution Center, Cutting 400 Jobs — Spokesperson