The U.S. labor market has seen a notable uptick in layoffs.
Amazon closed all of its Amazon Go and Amazon Fresh stores in late January to focus on expanding Whole Foods. CVSlaid off workers and closed physical stores to focus on online delivery, and Rite Aid’s bankruptcy led to the closing of its pharmacy stores.
Throughout the first months of the year, large employers have cited slower in-store sales due to the change in how consumers are shopping. This has led to streamlining operations and adjusting to shifting customer preferences amid economic headwinds.
The latest to reflect this trend is another big-name pharmacy, Walgreens, which has faced economic uncertainties since 2024. This, in part, led to the public company‘s transition to become private via an acquisition.
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Walgreens’ layoffs are unfolding as the company enters its new chapter. In a series of recent Worker Adjustment and Retraining Notification (WARN) filings, the company revealed its plans to lay off 159 employees. The job cuts are tied to the closure of a distribution center near Houston, Texas, and are slated for June 1, 2026, according to USA Today data.
In separate notices filed with the Illinois Department of Labor, Walgreens will lay off 461 employees in Deerfield, Chicago, and Danville. Together, these cuts will impact 469 positions in Illinois.
These actions put around 628 Walgreens jobs on the line so far as the chain reshapes its footprint.
Locations impacted so far:
- 102, 104, 106, 108, 200 Wilmot Rd., Deerfield, IL
- 433 W. Van Buren St., Chicago, IL
- 1901 E. Voorhees St., Danville, IL
- 1805 Green Rd., Houston, TX (distribution center closed)
Walgreens will lay off 461 employees at its headquarters in Deerfield, Illinois.
Photo by Bloomberg on Getty Images
Walgreens’ new private chapter
In 2025, Walgreens entered a new phase under private ownership as it completed its $10 billion acquisition by Sycamore Partners, taking the approximately 125-year-old public pharmacy chain private amid economic uncertainties.
During this process, Mike Motz, former CEO of Staples U.S. Retail, took over as Walgreens’ new CEO.
The layoffs align with Walgreens’ broader plan to retreat from brick-and-mortar stores, as it reduces underperforming locations, and they come amid a nationwide reset in pharmacy retail.
Walgreens currently operates 7,960 stores and plans to close around 350 stores in 2026, CNBC reported.
As part of the privatization, Sycamore intends to focus on speed and improve customer service.
According to the Texas WARN filing, Walgreens will close its 1805 Greens Rd., Houston, distribution center, and the layoffs are “consistent with these plans,” involving the entire facility when finalized.
According to the filing, all employees will be given full compensation and benefits for a 60-day period or until they resign, and will be notified during a 14-day period beginning Feb. 10 for the Illinois layoffs.
The impacted positions include analytical roles, as well as managerial positions such as supply chain roles, product managers, engineers, and human resources roles.
Related: UPS’ plan to cut 30,000 jobs hits legal roadblock amid Amazon pivot