Walgreens Cuts Hundreds of Jobs After Private Equity Buyout

Layoffs follow early cost-cutting measures that raised concerns for workers and patients

Published on Feb. 26, 2026

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Walgreens is laying off hundreds of workers across multiple states just months after its acquisition by private equity firm Sycamore Partners. The layoffs come after Walgreens had already begun cutting jobs and closing stores under private equity ownership, raising concerns about the impact on workers, patients, and communities.

Why it matters

Walgreens is one of the largest pharmacy operators in the country and a core part of healthcare access for many communities, particularly in rural, low-income, and underserved areas. Job losses and closures at the company directly affect workers' livelihoods and patients' ability to access prescriptions, vaccinations, and basic healthcare services.

The details

According to reporting, Walgreens is eliminating 469 jobs in Illinois and 159 positions in Texas, where the company is closing a distribution center, as Sycamore Partners moves to cut costs following its buyout of the pharmacy chain. These layoffs come after Walgreens had already begun cutting jobs and closing stores under private equity ownership, with the company reporting approximately 8,000 locations and 211,000 workers as of January, down from 8,500 stores and 220,000 employees reported at the time the buyout closed last August.

  • Walgreens reported approximately 8,000 locations and 211,000 workers as of January 2026, down from 8,500 stores and 220,000 employees reported at the time the buyout closed in August 2025.
  • Ahead of Thanksgiving 2025, Walgreens had eliminated paid holidays for hourly workers just months after the acquisition.

The players

Sycamore Partners

A private equity firm that acquired Walgreens in August 2025.

Jim Baker

Executive director of the Private Equity Stakeholder Project (PESP).

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What they’re saying

“When holiday pay cuts were announced, we said they could be a warning sign of things to come. Now Walgreens is laying off hundreds more workers, confirming concerns that early cost-cutting measures could be followed by deeper reductions. This pattern is unfortunately familiar in private equity takeovers.”

— Jim Baker, Executive director of the Private Equity Stakeholder Project (PESP)

“Putting the same leadership in charge of Walgreens raised serious questions from the start. At Staples, workers and communities paid the price while Sycamore extracted over a billion dollars from the retailer. Walgreens workers and patients are now left wondering whether Sycamore Partners is applying the same playbook again.”

— Jim Baker, Executive director of the Private Equity Stakeholder Project (PESP)

“These layoffs underscore the risks that come with turning essential healthcare providers into private equity portfolio companies. What happens next at Walgreens will matter not just for investors, but for workers, patients, and communities across the country.”

— Jim Baker, Executive director of the Private Equity Stakeholder Project (PESP)

The takeaway

The Walgreens layoffs following its acquisition by private equity firm Sycamore Partners highlight the risks of essential healthcare providers becoming private equity portfolio companies, as cost-cutting measures can directly impact workers' livelihoods and patients' access to critical services.