Walgreens Boots Alliance chief executive officer Tim Wentworth is continuing his effort to turn around the drugstore chain by consolidating its massive distribution network.
Walgreens confirmed Monday it was closing distribution centers in Florida and Connecticut that employ more than 600 combined at the two facilities. This move will still leave Walgreens with 14 distribution centers with the closure of the centers in Dayville, Conn., which employs 322, and Orlando wich employs 324, Walgreens said.
“We are focused on aligning our operational structure to best serve our patients and customers,” Walgreens said in a statement. “This includes an evaluation of our distribution center operations in order to streamline capacities to best support our stores.”
It’s the latest move by Walgreens under Wentworth, who took over as CEO last October, and has been working in the early part of this year to free up cash for more lucrative parts of the company’s operation, including specialty pharmacy, which is where most growth in prescription drug sales are and consumers have unmet treatment needs.
Walgreens in January announced plans to reduce its dividend by 48% to strengthen its balance sheet and cash position to invest in its businesses. Meanwhile, the company has also been involved in slowing the growth and shuttering underperforming doctor-staffed clinics run by VillageMD, which Walgreens holds a majority stake in and has been described by Wentworth as needing to go “on a diet.”
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