Walgreens will lay off hundreds of employees as the pharmacy chain continues to struggle with increased competition and higher-than-desired costs. On top of this, the newly private company is expected to close at least another few dozen retail stores in 2026. Here’s what you need to know.

What’s happened?

Walgreens has announced that it will cut at least 628 jobs across two states, according to communications it sent to the states in question earlier this month. A Walgreens spokesperson confirmed the layoffs with Fast Company when reached for comment.

News of the layoffs was first reported by Bloomberg.

The job cuts include 469 positions in the company’s home state of Illinois and 159 jobs in Texas, where the company is shuttering a distribution center.

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“We’re focused on becoming America’s best retail pharmacy, beginning with improving the in‑store experience for our customers and patients,” Walgreens said in a statement to Fast Company. “To do this, we’ve made the difficult decision to simplify our organization in both the support center  and  with  our field leadership to speed decision making and improve the service that millions of customers rely on every day.”

“We have deep respect for our colleagues and greatly appreciate their contributions and are committed to supporting them throughout this transition,” the spokesperson added.

Walgreens has been closing stores

In addition to the layoffs, Walgreens also reportedly confirmed that it will be closing dozens of stores in 2026. 

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