Walgreens layoffs confirm concerns after private equity buyout

Private Equity Stakeholder Project was featured in multiple outlets after Walgreens announced layoffs affecting hundreds of workers just months after its acquisition by private equity firm Sycamore Partners.

According to reporting across several publications, Walgreens is eliminating 469 jobs in Illinois and 159 positions in Texas, including the closure of a Houston-area distribution center. The layoffs follow earlier cost-cutting measures under private equity ownership, including job reductions, store closures, and changes to worker benefits.

The cuts come nearly one year after Sycamore Partners first announced its plan to acquire Walgreens, a deal that raised concerns among advocates and industry observers about how private equity ownership could affect the company’s workforce, store footprint, and role as a healthcare provider in communities across the country.

In a statement responding to the layoffs, PESP Executive Director Jim Baker said the cuts confirm concerns raised after Sycamore’s acquisition of the pharmacy chain.

“When holiday pay cuts were announced, we said they could be a warning sign of things to come,” Baker said. “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.”

The layoffs come months after Sycamore Partners took Walgreens private. Since the acquisition, Walgreens’ workforce and store footprint have already declined, raising concerns about the company’s trajectory under private equity ownership.

Below are several outlets that covered the layoffs and cited PESP’s response.

Supermarket News

Walgreens cuts 459 positions in Illinois
https://www.supermarketnews.com/retail-labor/walgreens-cuts-459-positions-in-illinois

Supermarket News reported that Walgreens confirmed 469 job cuts in Illinois shortly after announcing 159 layoffs tied to a Texas distribution center closure, bringing confirmed layoffs to more than 600. The outlet cited concerns raised by the Private Equity Stakeholder Project about the impact of the cuts on workers and communities.

HealthExec

Walgreens cuts 628 jobs and closes distribution facility, alarming private equity watchdog
https://healthexec.com/topics/healthcare-management/healthcare-logistics/walgreens-cuts-628-jobs-and-closes-distribution-facility-alarming-private-equity-watchdog

HealthExec highlighted the scale of the layoffs and the closure of a Houston distribution center, noting that critics warned the cuts could signal deeper reductions under private equity ownership. The article quoted PESP’s response to the layoffs.

Healthcare Finance News

Walgreens to lay off hundreds across two states
https://www.healthcarefinancenews.com/news/walgreens-lay-hundreds-across-two-states

Healthcare Finance News reported that Walgreens is laying off workers in Illinois and Texas months after the Sycamore Partners buyout and noted that critics, including PESP, had raised concerns about early cost-cutting measures following the acquisition.

Newsweek

Walgreens to Lay Off Workers as Store Closures Loom
https://www.newsweek.com/walgreens-to-lay-off-workers-as-store-closures-loom-11612299

Newsweek reported that Walgreens is laying off hundreds of workers while preparing for additional store closures. The outlet cited critics who warned that layoffs and cost-cutting could accelerate under private equity ownership.

Chicago Tribune

Walgreens laying off 469 Illinois employees, following sale to private equity firm
https://www.chicagotribune.com/2026/02/19/walgreens-layoffs-private-equity/

The Chicago Tribune reported that Walgreens is laying off 469 Illinois employees across offices in Deerfield, Chicago’s Old Post Office, and Danville. The article also cited concerns raised about the potential impact of private equity ownership on the company’s workforce and operations.