Political Pressure Mounts as Walgreens Faces Backlash Over Holiday Policy

The privatization of Walgreens by Sycamore Partners in late August 2025 has thrust the company into a heated political controversy. Senator Bernie Sanders has publicly condemned the new ownership for eliminating paid holidays for approximately 220,000 employees, setting a deadline of January 13, 2026, for the policy to be reversed. This dispute highlights a central conflict regarding the extent of cost-cutting measures under the private equity firm's control.

The acquisition, finalized on August 28, 2025, was structured as an all-cash offer of $11.45 per share. This price represented a significant decline from prior trading levels. Including assumed debt, the total transaction value reached approximately $23.7 billion. At the time of the deal, Walgreens carried long-term debt of around $8 billion.

A major restructuring is underway. Sycamore plans to split Walgreens into five separate operating units. The international division will be rebranded as "The Boots Group," led by Ornella Barra. Concurrently, a substantial reduction in the U.S. store footprint is planned, with reports indicating the closure of roughly 1,200 out of about 8,000 domestic locations. In a move signaling financial repositioning, the company suspended its dividend in early 2025, ending a 90-year history of consecutive payments.

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Sanders Escalates Labor Dispute

In a direct letter to Sycamore founder Stefan Kaluzny, Senator Sanders specifically criticized the removal of paid holidays, explicitly naming Christmas and Thanksgiving. He connected this action to the relatively low wages of many affected workers, which average around $15 per hour. His demands extend beyond reinstating the holiday pay; he has also called for detailed disclosures concerning executive compensation packages and any potential layoff strategies.

To contextualize his concerns, Sanders referenced Sycamore's previous investments in companies like Staples and Nine West. He pointed to patterns of job reductions and capital extraction observed in those transactions, using them to suggest a concerning precedent, though specific figures from those deals were not detailed in his correspondence.

Path Forward Under Scrutiny

The coming weeks will see parallel tracks of corporate action and political pressure. While Sycamore proceeds with its operational split and store closure program, Senator Sanders's January 13, 2026, deadline looms. His call for transparency on executive pay and workforce planning ensures that the practical and political dimensions of Walgreens' restructuring will remain intensely scrutinized, defining the company's near-term future.