Feb 19 (Reuters) – Pharmacy chain Walgreens is laying off over 600 employees across the U.S. following its acquisition by private equity firm Sycamore Partners, Bloomberg News reported on Thursday, citing company letters.
Walgreens is cutting 469 jobs in Illinois and plans to cut another 159 positions in Texas, where it is closing a distribution center, the report said.
The company did not immediately respond to a Reuters request for comment.
The distressed retailer was taken private for $10 billion last year, after a string of costly missteps and competition from lower-priced rivals such as Amazon and Walmart squeezed its margins.
Sycamore is planning to reduce costs by cutting Walgreens staff and taking away paid holidays for some employees, while working to boost store sales by adding products such as electronic cigarettes, the report said.
The private equity firm, which specializes in retail and consumer investments, has a track record of acquiring distressed retailers for profit, including brands such as Staples, Talbots and Nine West.
(Reporting by Mariam Sunny in Bengaluru; Editing by Jonathan Ananda)
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