The parent firm of Walgreen Company, which runs the pharmacy store chain that is the second-largest in the USA behind CVS Health, also said it will fire a sizeable number of employees at the soon to be shuttered stores, but anticipates retaining "the majority" of employees in other nearby locations.
Walgreens, the second-largest drug store chain in the USA with more than 8,200 stores (CVS has more than 9700), has announced they're closing 200 locations. A full list is expected to be released before the stores begin closing in the fall. The "transformational cost management program", as the company is calling it, will mean a pre-tax charge against earnings of about $1.9 billion to $2.4 billion, according to the regulatory filing.
The store closures are part of the company's cost management program that is aimed at mitigating the pressure related to generic drug prices, the company had said in June.
The company, with more than 18,000 stores worldwide, earlier announced plans to close 200 stores in the United Kingdom.
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Most affected employees are expected to be placed elsewhere in the company.
In December previous year, Walgreens announced it would seek to take action in an effort to cut costs by 2022.
Competitor CVS said in May it will close 46 stores and company officials warned more unprofitable stores could follow.
Founded in 1901 as a single drugstore, Walgreens has grown to oversee 9,560 stores and employs 240,000 people nationwide. The filing did not specify which stores will be closed.