Walgreens CEO Pessina to Step Down, Become Chairman -- Update
July 27 2020 - 11:43AM
Dow Jones News
By Dave Sebastian
Walgreens Boots Alliance Inc. said Stefano Pessina has decided
to step down as chief executive after five years in the role, and
will become executive chairman once the company names his
successor.
The largest U.S. drugstore chain by stores on Monday said James
Skinner will step down as executive chairman but remain on the
board to guide the transition.
The company's shares fell 2.7% in morning trading
Mr. Pessina became the company's executive vice chairman in
January 2015 following Walgreens and Alliance Boots' combination in
December 2014 and subsequently served as interim CEO before being
confirmed in the role in June 2015. He was previously executive
chairman of Alliance Boots. Mr. Skinner has been executive chairman
since January 2015.
Walgreens Boots Alliance has more than 18,750 stores and about
400 distribution centers supplying more than 115,000 pharmacies,
doctors, health centers and hospitals every year, it said. It
operates in more than 25 countries.
The company earlier this month said it was cutting about 4,000
jobs in the U.K. and suspending stock buybacks as demand fell in
its international business. For its quarter ended May 31, the
company said the Covid-19 pandemic sliced about $700 million to
$750 million in sales, with most of the effects tied to its
retail-pharmacy business overseas. The company generated $34.6
billion in quarterly sales, roughly flat from the year-ago
period.
The pandemic has been challenging for drugstores, as patients
put off visiting doctors and other health providers. Walgreens has
also been cutting costs in its home market and last year said it
was closing 200 stores.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 27, 2020 11:28 ET (15:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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