Walgreens Boots Alliance Inc. reported earlier this month that it plans to close 200 drug stores in the U.S. as part of an overall plan to cut $500 million in costs. The cost cutting plan also includes a corporate reorganization.
The merger between Walgreens and Alliance Boots, operator of the U.K. chain Boots as well as a large drug distribution business, was completed late last year. Although the companies decided to keep the headquarters in the U.S., it's clear that the European leadership team is in charge.
In discussing Walgreens, Walgreens Boots CEO Stefano Pessina said, "Some parts are better than expected, while others have room for improvement."
Additional changes planned for Walgreens include cutting back on promotions that cut too deeply into profit margins, and streamlining the company's information technology department and systems.