Walgreens Implements Sweeping Cost-Cutting Measures Under Private Ownership

The transition to private equity control is yielding immediate and substantial operational changes at Walgreens. In one of the most significant workforce adjustments since the company's departure from public markets, the pharmacy chain has eliminated paid time off for six federal holidays for its hourly employees. This policy shift affects the majority of Walgreens' U.S. workforce immediately.

Sycamore Partners finalized its acquisition of Walgreens Boots Alliance in August 2025, completing a transaction valued at approximately $10 billion. This landmark deal concluded the company's nearly century-long history as a publicly traded entity, with Walgreens shares subsequently delisted from the Nasdaq exchange. The organization now operates outside the scrutiny of public market oversight.

Under the leadership of new CEO Mike Motz, who assumed the position in late August following Tim Wentworth's departure, Walgreens is pursuing comprehensive strategic changes. The elimination of holiday pay represents just one component of an extensive cost-reduction initiative that includes:

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• Planned closure of up to 1,200 underperforming locations over a three-year period
• Complete restructuring of core retail and pharmaceutical operations
• Elimination of quarterly and annual reporting obligations to shareholders

Policy Change Details

Full-time hourly employees will no longer receive automatic compensation for Christmas, Thanksgiving, New Year's Day, Memorial Day, Independence Day, and Labor Day. Previously, eligible staff members received this benefit regardless of whether they worked on these holidays. The decision, communicated to employees in October, forms a central element of the aggressive efficiency program implemented following the company's shift to private ownership.

Operating Without Public Market Constraints

As a privately held company, Walgreens no longer faces requirements to publish earnings reports or provide financial guidance to investors. This newfound freedom enables management to execute substantial organizational transformations that would likely have encountered significant resistance from public market participants.

The 123-year-old retail pharmacy chain continues to navigate evolving consumer behaviors and intensifying competitive pressures. Under private equity stewardship, Walgreens is now exclusively focused on operational efficiency improvements and long-term value creation, pursuing these objectives with considerable determination.