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By Amanda Greenwood
Associate News Editor
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Walgreens, a U.S. pharmacy and retail chain, is laying off hundreds of employees in Texas and Illinois, months after being acquired by private equity firm Sycamore Partners, as the company also plans additional store closures in 2026.
The Walgreens Layoffs
According to a report by Healthcare Finance News, Walgreens plans to eliminate 159 jobs in the Houston area beginning June 1, based on a Worker Adjustment and Retraining Notification (WARN) notice filed with the state of Texas.
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The layoffs are tied to the closure of a distribution center that supplies Walgreens stores in the region.
In addition to this, 469 positions are being cut in Illinois, the company’s home state, bringing the total number of layoffs to more than 600.
Walgreens Acquisition By Sycamore Partners
These workforce reductions follow Walgreens’ August 2025 acquisition by Sycamore Partners, a private equity firm that took the company private after years of financial pressure.
Critics of the deal warned that cost‑cutting measures—including layoffs and store closures—could accelerate under private equity ownership, and Walgreens’ recent actions are reinforcing those concerns, according to the Private Equity Stakeholder Project (PESP)—which monitors the impact of private equity investments on workers and communities.
Jim Baker, Executive Director of the PESP, said: “When holiday pay cuts were announced, we said they could be a warning sign of things to come. Now Walgreens is laying off hundreds more workers, confirming concerns that early cost-cutting measures could be followed by deeper reductions. This pattern is unfortunately familiar in private equity takeovers.”
Walgreens Store Closures
In addition to the layoffs, Walgreens previously confirmed that it would be closing dozens of stores in 2026 as part of a larger plan to shrink its retail footprint. The company announced it would shutter 1,200 stores over a three‑year period, including 500 closures in fiscal year 2025 alone, citing unprofitable locations and changing consumer behavior, according to Healthcare Finance News.
Walgreens executives have acknowledged that roughly 25 percent of the chain’s remaining stores are not profitable, underscoring the financial challenges facing the company.
As of January 2026, Walgreens operated approximately 8,000 locations and employed about 211,000 workers, down from roughly 8,500 stores and 220,000 employees at the time of the Sycamore Partners acquisition.
What People Are Saying
A Walgreens spokesperson said in a statement to Fast Company, reported by Inc., that: “We’re focused on becoming America’s best retail pharmacy, beginning with improving the in‑store experience for our customers and patients. To do this, we’ve made the difficult decision to simplify our organization…to speed decision-making and improve the service that millions of customers rely on every day.” Adding that Walgreens has deep respect for our colleagues and greatly appreciates their contributions, and is committed to supporting them throughout this transition.”
In March 2024, commenting on earlier distribution-center closures, a Walgreens official previously told Newsweek: “We are focused on aligning our operational structure to best serve our patients and customers… After a careful review, we’ve made the difficult decision to close our distribution centers in Dayville, Connecticut, and Orlando, Florida, resulting in the elimination of approximately 646 total roles.”
What Happens Next
Walgreens said it will continue evaluating its store footprint and operations, as part of ongoing efforts that include additional store closures planned for 2026.
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