In October 2025, Walgreens employees were jolted by a sweeping change: just weeks after private equity firm Sycamore Partners finalized its $10 billion acquisition of the pharmacy giant, the company announced it would eliminate six paid holidays for hourly workers. For many, this meant not only the loss of cherished time off but also a significant reduction in annual income. The move signaled a new era for Walgreens—one defined by aggressive cost-cutting and corporate restructuring, with ripple effects felt by workers, communities, and the broader healthcare industry.
Sycamore’s Vision: Refocusing and Restructuring
Sycamore Partners, a firm with a track record of retail acquisitions, stepped in as Walgreens grappled with mounting losses from its healthcare ventures. The buyout, approved by shareholders in July 2025, was pitched as a lifeline to restore the company’s financial health. Sycamore’s strategy centered on returning Walgreens to its core pharmacy business, shedding less profitable operations, and streamlining costs across the board.
Within weeks of taking control, Sycamore initiated a dramatic overhaul. Walgreens was split into five independent companies, and plans were set in motion to close 1,200 stores over three years. The closures targeted underperforming locations, raising concerns about access to pharmacy services in vulnerable communities. Meanwhile, the company’s international arm, Boots Group, was spun off, introducing uncertainty for customers and employees abroad.
Impact on Workers: Losses and Layoffs
The most immediate and personal impact of Sycamore’s changes fell on Walgreens’ hourly employees. The elimination of paid holidays—including Thanksgiving, Christmas, New Year’s, Memorial Day, July 4th, and Labor Day—meant workers would only be compensated for these days if they worked them. For many, this translated to a loss of over $1,000 in annual wages, a significant blow for those already struggling to make ends meet.
The cuts extended beyond the front lines. Walgreens laid off about 80 corporate employees, including much of its communications team, and shuttered its downtown Chicago office. These moves reflected a broader shift toward a leaner, profit-driven operation, but they also eroded morale and job security among staff.
A Divided Industry: Walgreens vs. CVS
As Walgreens slashed benefits, its chief competitor, CVS, maintained paid holidays for full-time employees. This divergence underscored a growing divide in the pharmacy sector’s approach to employee compensation. While Walgreens prioritized investor returns through cost reductions, CVS positioned itself as a more stable and attractive employer, potentially drawing disaffected Walgreens workers into its ranks.
The contrast between the two chains extended beyond worker benefits. With Walgreens scaling back its footprint, CVS seized the opportunity to expand, intensifying competition for both market share and talent. The shifting landscape raised the prospect of further consolidation in the industry, with implications for workers and consumers alike.
Community and Industry Fallout
The consequences of Walgreens’ restructuring rippled through local economies, especially in areas where the company was a major employer. Store closures, wage cuts, and layoffs strained household finances and threatened to reduce consumer spending in affected regions. Suppliers, from pharmaceutical distributors to logistics firms, faced uncertainty as Walgreens scaled back operations, complicating supply chains and raising questions about the availability of key medications.
Healthcare advocates and policymakers voiced concerns about the broader impact on patient care. With fewer stores and potentially reduced staff hours, access to pharmacists and personalized healthcare services became less certain. Critics warned that the focus on profitability risked undermining the trust and community relationships that had long defined Walgreens’ role in American healthcare.
Private Equity’s Growing Influence
The Walgreens buyout became a flashpoint in the debate over private equity’s role in essential services. Supporters argued that Sycamore’s intervention would bring much-needed efficiency and discipline to a struggling company. Detractors countered that the relentless pursuit of profit came at the expense of workers, consumers, and public welfare.
Legislators and watchdog groups launched investigations into the implications of such acquisitions, questioning whether rapid cuts to worker benefits and store networks served the public interest. The outcome of these inquiries could shape the future of private equity involvement in healthcare and other critical sectors.
Looking Forward: Uncertain Terrain
As Walgreens navigates its new reality under Sycamore Partners, the stakes remain high for employees, customers, and the industry at large. Further store closures, layoffs, and cost reductions are possible as the company seeks to regain profitability. For pharmacy workers across the country, the changes at Walgreens highlight growing instability in a sector increasingly shaped by financial interests. For consumers, the evolving landscape raises pressing questions about access, quality, and the balance between profit and public service in retail healthcare.