The company said it is eliminating 469 jobs in Illinois, where it is headquartered, and plans to cut another 159 positions in Texas, where it is closing a distribution center. (Walgreens)
February 19, 2026 4:00 PM, EST
Walgreens is laying off hundreds of employees across the country as the beleaguered pharmacy chain’s new private equity owners look to cut costs.
The company said it is eliminating 469 jobs in Illinois, where it is headquartered, and plans to cut another 159 positions in Texas, where it is closing a distribution center, according to letters it sent to the states earlier this month.
“We’ve made the difficult decision to simplify our organization,” Walgreens said in a statement, explaining the changes are intended to help it make decisions more quickly and improve customer service.
The pharmacy chain was purchased last year by the private equity outfit Sycamore Partners after years of plummeting profitability. Increased competition in the front of the store from online retailers and discount chains, coupled with falling payments from insurance companies for prescription drugs, crimped Walgreens’ revenue.
Sycamore has set about trimming costs by cutting staff and taking away paid holidays for some employees, while working to boost store sales by adding products like electronic cigarettes.
“Walgreens is reorganizing several areas of the business to best position the Company for growth and deliver results where they matter most: in our stores and with our customers and patients,” a Walgreens representative wrote in a letter notifying the Illinois Department of Commerce and Economic Opportunity about the layoffs.
The company is also slowing down its store closures. Walgreens plan to shutter fewer than 100 locations this year, fewer than previously planned, and open four new ones, a company spokesperson said.
Walgreen Co. ranks No. 52 on the Transport Topics Top 100 list of the largest private carriers in North America.
