CHICAGO, IL, UNITED STATES, February 19, 2026 /EINPresswire.com/ — Walgreens is laying off hundreds of workers across multiple states just months after its acquisition by private equity firm Sycamore Partners, a move that follows early cost-cutting measures that had already raised concerns for workers, patients, and communities.
According to reporting by Bloomberg, Walgreens is eliminating 469 jobs in Illinois and 159 positions in Texas, where the company is closing a distribution center, as Sycamore Partners moves to cut costs following its buyout of the pharmacy chain.
These layoffs come after Walgreens had already begun cutting jobs and closing stores under private equity ownership. As PESP documented last month, Walgreens reported approximately 8,000 locations and 211,000 workers as of January, down from 8,500 stores and 220,000 employees reported at the time the buyout closed last August. Ahead of Thanksgiving, the company had also eliminated paid holidays for hourly workers just months after the acquisition.
“When holiday pay cuts were announced, we said they could be a warning sign of things to come,” said Jim Baker, executive director of the Private Equity Stakeholder Project (PESP). “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.”
Sycamore Partners’ approach at Walgreens reflects the broader private equity business model that emphasizes cost-cutting and financial engineering shortly after acquisitions. Sycamore installed the former CEO of Staples US Retail to lead Walgreens, an executive who oversaw the closure of roughly one-third of Staples’ U.S. stores and tens of thousands of layoffs after Sycamore Partners took Staples private. During that period, Sycamore also added debt to Staples’ balance sheet in order to extract a $1 billion dividend for itself.
“Putting the same leadership in charge of Walgreens raised serious questions from the start,” Baker said. “At Staples, workers and communities paid the price while Sycamore extracted over a billion dollars from the retailer. Walgreens workers and patients are now left wondering whether Sycamore Partners is applying the same playbook again.”
Walgreens is one of the largest pharmacy operators in the country and a core part of healthcare access for many communities, particularly in rural, low-income, and underserved areas. Job losses and closures at the company directly affect workers’ livelihoods and patients’ ability to access prescriptions, vaccinations, and basic healthcare services.
“These layoffs underscore the risks that come with turning essential healthcare providers into private equity portfolio companies,” Baker said. “What happens next at Walgreens will matter not just for investors, but for workers, patients, and communities across the country.”
Matt Parr
Private Equity Stakeholder Project
+1 773-234-4855
email us here
Legal Disclaimer:
EIN Presswire provides this news content “as is” without warranty of any kind. We do not accept any responsibility or liability
for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this
article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
