Walgreens is laying off hundreds of workers, but its list of store closures in 2026 might not be as big as feared

Walgreens will lay off hundreds of employees as the pharmacy chain continues to struggle with increased competition and higher-than-desired costs. On top of this, the newly private company is expected to close at least another few dozen retail stores in 2026. Here’s what you need to know.

What’s happened?

Walgreens has announced that it will cut at least 628 jobs across two states, according to communications it sent to the states in question earlier this month. A Walgreens spokesperson confirmed the layoffs with Fast Company when reached for comment.

News of the layoffs was first reported by Bloomberg.

The job cuts include 469 positions in the company’s home state of Illinois and 159 jobs in Texas, where the company is shuttering a distribution center.

“We’re focused on becoming America’s best retail pharmacy, beginning with improving the in‑store experience for our customers and patients,” Walgreens said in a statement to Fast Company. “To do this, we’ve made the difficult decision to simplify our organization in both the support center  and  with  our field leadership to speed decision making and improve the service that millions of customers rely on every day.”

“We have deep respect for our colleagues and greatly appreciate their contributions and are committed to supporting them throughout this transition,” the spokesperson added.

Walgreens has been closing stores

In addition to the layoffs, Walgreens also reportedly confirmed that it will be closing dozens of stores in 2026. 

While no exact numbers were given, Bloomberg says the pharmacy chain confirmed that the number of closing locations would be fewer than 100, which is less than previously planned. Walgreens said in 2024 that it had targeted 1,200 stores for closure by 2027.

Walgreens will also reportedly open four new locations this year.

Pharmacy chains have struggled in recent years

Last August, Walgreens went private when the private equity firm Sycamore Partners purchased the company for roughly $10 billion. The move marked the end of the iconic pharmacy chain’s nearly century-long reign as a publicly traded company.

For years before the deal, Walgreens, like other pharmacy chains, had struggled with increased online competition from the likes of Amazon and falling foot traffic that was exacerbated by the Covid-19 pandemic.

Pharmacy chains have also struggled with rising costs and increasing debts. These factors contributed to competitor Rite Aid’s bankruptcy in 2025 and led to a wave of pharmacy layoffs over the past few years, including at CVS.

According to the company’s website, Walgreens currently has around 8,000 locations in the United States and Puerto Rico and employs around 211,000 workers.