Walgreens Boots Alliance will close approximately 200 locations in the U.S. as part of the company’s on-going effort to cut costs.
The announcement comes just weeks after the company said it was closing 200 stores in the United Kingdom.
In a filing with the Securities and Exchange Commission, the company said the store closings on both sides of the Atlantic are part of Walgreen Boots’ Transformational Cost Management Program that is expected to deliver annual cost savings of $1.5 billion by 2022.
That program is multi-faceted and includes divisional optimization initiatives, global smart spending, global smart organization and the transformation of the company’s information technology (IT) capabilities.
In the SEC filing, the company said that it currently estimates the Transformational Cost Management Program will result in cumulative pre-tax charges to its GAAP financial results of approximately $1.9 billion to $2.4 billion, of which $1.6 billion to $2 billion are expected to be recorded as exit and disposal activities.