In an effort to cut costs, Walgreens plans to close 200 U.S. stores, two years after it acquired Rite Aid and expanded its footprint to 9,500 stores.
These closures represent less than 3% of Walgreen locations, according to CNN. The closures are expected to cause “minimal disruption to customers and patients,” said Walgreens in a statement to CNN.
The company said it will find jobs for those employees affected in nearby locations. Its parent company Walgreens Boots Alliance announced in June it would close 200 of its more than 2,400 Boots stores in the United Kingdom.
Walgreens expects the combined closures to save the parent company $1.5 billion annually by the end of fiscal 2022. It also said in its most recent filing it will take a pre-tax charge of up to $2.4 billion for the closures.