Workers at Walgreens were left frustrated after the company decided to make some unfortunate changes across its business. In a recent update to its operations, Walgreens opted to eliminate six paid holidays for its hourly store workers. The company was recently acquired by private equity firm Sycamore Partners, and the organization has intensified its focus on aggressive cost-cutting measures to address the business’s struggles. The strategy may help eliminate some expenses and dial down operational costs, but for workers, these changes offer no hope of relief.
Walgreens eliminates the six paid holidays it previously offered hourly workers, however, they can still expect additional pay for working holidays. (Image: Pexels)
Walgreens Eliminates Six Paid Holidays for Its Hourly Workers
After Sycamore Partners’ buyout of Walgreens for $10 billion, the pharmacy chain has been hit by a series of changes intended to rescue the floundering business. As part of this change, Walgreens is eliminating paid holidays for its retail workers, meaning they will no longer receive a day off on major holidays such as Christmas, Thanksgiving, and Labor Day, while still expecting to be paid.
Previously, full-time workers were allowed this freedom as long as they met certain preset criteria. Those who did work on these holidays were allowed additional compensation for their effort, making it a worthwhile choice for many. Following the changes, workers will have to work during holidays if they expect to get paid, although those who do may also receive some extra compensation.
According to the LA Times, one manager estimates that she could lose over $1,000 in wages due to the specified changes, which have forced her to rethink her plans with her family during the holidays. Hourly wage employees at other organizations that previously did not enjoy this benefit may not find this change as alarming, but for Walgreens’ hourly store workers, the change is one that disappoints.
The Walgreens Buyout Also Comes with Minor Job Cuts
With rising competition and more fast-paced alternatives, Walgreens has struggled to keep its spot in the market over the last few years. The $10 billion buyout may have saved the business, but more changes are needed to revive the organization and bring its customers back. Unfortunately, as with more economic challenges, this attempt has also come with job cuts.
Last month, the company reportedly laid off 80 corporate employees across its offices in Chicago and Deerfield. This was around the same time that employees learnt about Walgreens’ pay cut strategy for hourly workers, losing out on their paid holidays. This isn’t the first time the company has had to turn towards layoffs. Around the same time in 2024, the pharmacy chain laid off around 256 corporate workers and announced its plans to shutter 1,200 stores. More corporate roles had been cut earlier that year.
Benefits Are Key to Retention and Engagement
There are no regulations that require Walgreens to offer its hourly store workers these paid holidays, however, the benefit likely played an important role in attracting candidates to the job. Competitors like CVS Health still provide full-time employees with seven paid holidays and additional pay for those who decide to come in for work. Of course, in contrast, there are also stories like the fall of competitor Rite Aid, which faced similar struggles to Walgreens in recent years.
At Walgreens, many workers will likely choose to come into work to secure their pay, and those who would prefer the day off will take the day off as needed. While the business is unlikely to be affected, there are no such guarantees on employee morale. The change is a small one, but the threat of pay cuts for Walgreens’ hourly workers could impact those it manages to attract and retain over competitors.
CVS and Walgreens workers have organized walkouts in the past, with more recent efforts to unionize witnessed among CVS workers. These union drives bring up many questions about the lives of workers and the quality of their experience with employers, and highlight the many struggles of pharmacy workers who are hoping to see the industry find stability once more.
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