THE WHAT?   Walgreens Boots Alliance (WBA.O) plans to chop at the least $1 billion in prices in 2024 as a part of its ongoing efforts, which embrace closing unprofitable shops, following a monetary 12 months 2024 revenue projection beneath Wall Avenue’s expectations.

THE DETAILS The price-cutting measures will contain utilizing synthetic intelligence to boost provide chain effectivity and capital expenditure might be diminished by about $600 million. Regardless of a 5% rise in its shares throughout early buying and selling, Walgreens’ shares have fallen almost 40% this 12 months resulting from declining gross sales of COVID-19 merchandise, weak prescription drug demand, worker walkouts, and sluggish shopper well being product gross sales amid excessive inflation.

THE WHY?  Walgreens goals to handle its monetary challenges, together with the impression of the COVID-19 pandemic and declining gross sales, by implementing vital value reductions. The corporate’s interim CEO, Ginger Graham, acknowledged that these modifications align with their dedication to clients and sufferers. Moreover, Walgreens confronted a $6.8 billion pre-tax cost associated to opioid-related claims and litigation within the earlier monetary 12 months. The corporate had beforehand introduced its intention to shut 150 shops in the US and lately appointed a brand new everlasting CEO.