Rite Aid to cut about 400 U.S. jobs to save $55 million
Approximately two-thirds of the reductions will take place now with the balance by the end of fiscal 2020.
As a result of the restructuring, Rite Aid expects to achieve annual cost savings of approximately $55 million, of which approximately $42 million will be realized within fiscal year 2020.
These cost savings will serve to offset an expected reduction in income associated with its diminishing obligations under the Transition Services Agreement with Walgreen Co., which related to the prior sale of stores.
Rite Aid expects to incur a one-time restructuring charge of approximately $38 million to achieve the targeted cost savings. ■