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Walgreens announced that it is closing 150 stores in the United States and an additional 300 locations in the United Kingdom as part of a $4.1 billion cost-cutting plan.
The company said that closings, which will be completed by August 31, 2024, and hundreds of layoffs will save the company at least $800 million next year.
The announcement comes as the company reported a massive drop in year-over-year earnings for the third quarter, bringing in just $118 million, compared to $289 million last year.
Walgreens CEO Rosalind Brewer told investors that the dip in revenue was due to a decrease in demand for COVID vaccines and tests and overall lower consumer spending.
"Similar to other retailers, we've been impacted by the rapid softening of the macro environment and a more cautious and value-driven consumer," Brewer said.
Walgreens did not say what stores will be closed. The company expects the closings to be completed by August 31, 2024.