Walgreens Cancels Corporate Bonuses Amid Fiscal Struggles, Leadership Shakeups, and Employee Walkouts

Crippling $6.9 Billion Operating Loss and Employee Protests Loom as Walgreens Halts Bonuses with New CEO at the Helm

Walgreens Boots Alliance has announced no annual bonuses for its corporate employees due to disappointing fiscal results for the year, and an operating loss of $6.9 billion mainly caused by losses related to opioid litigation.
Pharmacy managers could still receive 25% of their target bonus based on performance, however, the company is in cost-cutting mode with plans to save around $1 billion.
This decision followed amidst three-day planned walkouts by pharmacy workers demanding better pay and working conditions, although Walgreens insists this is not linked to the decision and the impact of the walkouts has been minimal.
The company has recently experienced significant leadership changes, with former Cigna executive Tim Wentworth stepping in as the new CEO following Rosalind Brewer's abrupt departure, and Manmohan Mahajan serving as the interim Global Chief Financial Officer.
In addition to internal challenges, Walgreens is also grappling with external industry difficulties including declining in-store traffic due to the rise of online prescription services, a trend amplified by the COVID pandemic.