Walgreens Cuts Six Paid Holidays for Hourly Employees

Walgreens has made significant changes to its holiday pay policy for hourly employees. The pharmacy chain will no longer offer paid vacation time for major holidays following a $10 billion acquisition by Sycamore Partners.

Changes to Paid Holidays

In early October, Walgreens announced the elimination of six paid holidays. The removal of these benefits affects workers during important times such as Thanksgiving, Christmas, and New Year’s Day.

Background of the Acquisition

This decision follows the pharmacy’s buyout by private equity firm Sycamore Partners. Walgreens had been grappling with declining profits and sought to streamline operations to enhance its financial performance.

Cost-Cutting Measures

Along with cutting paid holidays, Walgreens reportedly terminated around 80 corporate employees primarily from its communications team. These measures reflect the company’s effort to reduce costs after the acquisition.

Impact on Hourly Employees

Previously, full-time employees received pay for holidays even if they did not work, provided they had been with the company for at least six months. Going forward, employees must work on holidays to earn their pay and will now qualify for additional holiday pay.

Future Plans for Walgreens

The chain is also intending to close approximately 1,200 underperforming stores across the United States in 2024. This strategy aims to counteract dwindling revenue from low drug reimbursement rates and sluggish retail sales.

As this situation develops, it remains unclear how these changes will affect employee morale and customer service. No comments have been made by either Walgreens or Sycamore Partners regarding the recent adjustments.