Walgreens quietly ends generous employee perk before the holidays

Company Overview - Walgreens has over 8,000 stores nationwide and has faced significant financial struggles over the past decade due to opioid-related claims, inflation, tariffs, high interest rates, labor shortages, increased competition, and changing consumer behavior [1][2]. Financial Performance - In its third-quarter earnings report for 2025, Walgreens reported a net loss of $175 million, with U.S. retail sales decreasing by 5.3% year over year [2]. - The company plans to close approximately 1,200 stores over the next three years, including 500 stores in the current year [2]. Industry Trends - Competitors such as CVS and Rite Aid are also closing stores, indicating broader challenges within the pharmacy retail industry [3]. - The rate of pharmacy store closures in the U.S. has doubled in recent years, with nearly 1 in 3 pharmacies closing between 2010 and 2021 [8]. Employment Impact - As Walgreens closes stores, retail employees are losing their jobs, and the company has decided to remove six paid holidays for hourly store workers, including Thanksgiving and Christmas [5][6]. - Workers must now work on holidays to receive any pay, although those who do work on holidays can still receive extra compensation [7]. Demographic Disparities - Pharmacy closure rates are higher in predominantly Black (37.5%) and Latino (35.6%) neighborhoods compared to predominantly white neighborhoods (27.7%) [8].