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Warehouse Closure in Texas Affects 159 Workers, Plans Full Payment for 60 Days and Transfers Operations to Another Location, Amid Larger Cuts and Structural Reorganization Following Network Change of Control in the United States.
Walgreens has decided to close a distribution center in northern Houston, Texas, and announced that the measure will affect 159 employees, with permanent layoffs expected to begin on June 1, 2026, according to a labor notification delivered to state authorities.
The company stated that, after the closure of the facility, it intends to concentrate the supply for stores and deliveries in Texas from the distribution center in Waxahachie, also in the state, as part of a plan to streamline routes and standardize service.
According to the communication cited by the trade press, affected workers will remain employed and receive full payment for 60 days, or until they choose to leave before the end of the period, maintaining their compensation during the transition.
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The facility being deactivated is located near George Bush Intercontinental Airport, in a logistics corridor relevant for cargo and regional distribution, and is identified at the address 1805 Greens Road, in the northern part of the city.
Logistical Reorganization in Texas and Impact on Deliveries
With the removal of one of the hubs in the state, Walgreens will now operate a service strategy from a single center in Texas, which alters the supply structure and redistributes flows that previously passed through Houston.
In response to the closure notice, the company also mentioned local support measures, such as career fairs and job placement services, which are common practices in formal mass layoff processes in the United States.
The notification follows the model required by advance notice rules applicable to plant closures and mass layoffs, which transforms an operational decision into public information, with a fixed number of positions and a defined timeline.
Beyond the decision in Houston, the consolidation in Waxahachie is likely to require route adjustments, inventory rebalancing, and delivery timeline reprogramming, as the state has distant urban areas and distributed logistical demand.
Cuts in the United States Expand Restructuring Scenario
The reduction in Texas occurs at the same time that Walgreens is associated with other layoffs in the United States, including reported cuts in Illinois, with notifications registered with local authorities and reported by business outlets.
In a Reuters report, the company was mentioned in a package of cuts totaling over 600 positions, with 469 vacancies in Illinois and the 159 linked to the closure of the Houston center, according to internal letters mentioned by the agency.
This backdrop helps frame the closure as part of a broader reorganization, where infrastructure decisions and corporate changes go hand in hand, focusing on reducing costs and simplifying the operational structure.
What the Company Says About Efficiency and Store Service
A spokesperson told the specialized website Supply Chain Dive that the reorganization aims to “streamline” the service and deliveries from a single source in Texas, intending to better serve customers and alleviate the workload in stores.
According to the same report, Walgreens described the initiative as a way to increase predictability and consistency in supply, shortening internal steps that can multiply in networks with thousands of points of sale.
Meanwhile, local outlets highlighted that with the deactivation of the unit in Houston, the group will operate 14 distribution centers in the United States, with California as the only state with two hubs, according to the coverage.
Micro-Fulfillment and Automation in the Supply Chain
In addition to the consolidation in Texas, Walgreens has mentioned the expansion of micro-fulfillment centers, structures with technology aimed at processing and sending prescriptions to stores, as part of the modernization of its supply chain.
According to Supply Chain Dive, the company stated that it has been using micro-fulfillment since 2021 and that the network currently supports around 5,100 stores, with over 16 million prescriptions per month, within this operation model.
The same survey claims that Walgreens operates 14 micro-fulfillment centers and mentioned the opening of a unit in Brooklyn Park, Minnesota, in May 2025, as well as a center in West Jordan, Utah, inaugurated in December 2025.
In this context, the network asserts that automation can free up pharmacy teams’ time for services such as vaccination and preventive actions, although the physical closure in Houston is, in itself, an immediate measure independent of technological promise.
Change of Control After Acquisition by Sycamore Partners
The reorganization also occurs after Walgreens began operating as a private company, following the acquisition by Sycamore Partners, completed on August 28, 2025, according to official announcements released by both companies.
In the corporate announcement, Walgreens stated that it began operating as an independent private company and announced a leadership change, while Sycamore declared that after the deal was finalized, Walgreens and other operations would function as separate companies.
On the other hand, Reuters reported that the round of cuts came after the acquisition and cited competitive pressure and recent difficulties in pharmaceutical retail, indicating that the structural reduction is part of a broader redesign of operations.
In the case of Texas, what is recorded, with date and number, is the closure of the Houston center, the transfer of service to Waxahachie, and the permanent layoff of 159 individuals, with payment for 60 days and on-site reemployment actions.
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