(Bloomberg) — Walgreens Boots Alliance Inc. will close 200 of its 8,232 U.S. drugstores to reduce costs as its profits get squeezed by competition and by lower reimbursements from pharmaceutical insurers.
The company will also reorganize corporate and field operations and revamp its technology, which along with the store closings will help cut an additional $500 million in costs by the end of fiscal 2017. That would extend a $1 billion cost-cutting initiative announced in August.
Investors cheered the plans and the company's quarterly earnings report, which beat analysts' estimates. Walgreens Boots shares climbed 3 percent to $90.30 in early trading. Through Wednesday, they had increased 15 percent this year.
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