Layoffs coming soon, to a WAGs near you!

Started by Pharmacy is a Scam
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Pharmacy is a Scam

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In their latest SEC filing, WAGs is expecting a cost of $200-300m due to “lease obligations and real estate costs.” This is consistent with their aforementioned 200+ store closure.

But the real gem is this: a $600-700m cost for “employee severance and business transition” effective Sept 1. Now, I’m no math whiz but a simple calculation dictates that thousands will have to be laid off in order to achieve a sum of $700m. Assuming they paid out each pharmacist $200k, they’d have to lay off 3,500 pharmacists in order to reach that figure.

So is doomsday Sept 1? Guess we’ll see in a week!
 
Pharmacy is a Scam said:

In their latest SEC filing, WAGs is expecting a cost of $200-300m due to “lease obligations and real estate costs.” This is consistent with their aforementioned 200+ store closure.

But the real gem is this: a $600-700m cost for “employee severance and business transition” effective Sept 1. Now, I’m no math whiz but a simple calculation dictates that thousands will have to be laid off in order to achieve a sum of $700m. Assuming they paid out each pharmacist $200k, they’d have to lay off 3,500 pharmacists in order to reach that figure.

So is doomsday Sept 1? Guess we’ll see in a week!
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Um with about 200 stores, they will probably lay off 100 to 400 pharmacists. Most of these stores are fully staffed with only two pharmacists and you'd think a lot would be offered a floater position. My gut says around 100 will be laid off.

The 600 million will also contain the rest of the employees at those stores.
 
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Pharmacy is a Scam said:

In their latest SEC filing, WAGs is expecting a cost of $200-300m due to “lease obligations and real estate costs.” This is consistent with their aforementioned 200+ store closure.

But the real gem is this: a $600-700m cost for “employee severance and business transition” effective Sept 1. Now, I’m no math whiz but a simple calculation dictates that thousands will have to be laid off in order to achieve a sum of $700m. Assuming they paid out each pharmacist $200k, they’d have to lay off 3,500 pharmacists in order to reach that figure.

So is doomsday Sept 1? Guess we’ll see in a week!
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my question is recession coming?
 
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wagrxm2000 said:
Um with about 200 stores, they will probably lay off 100 to 400 pharmacists. Most of these stores are fully staffed with only two pharmacists and you'd think a lot would be offered a floater position. My gut says around 100 will be laid off.

The 600 million will also contain the rest of the employees at those stores.
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Here are some assumptions I’ll make to try and do a better estimate:

•Average number of workers per store = 30 (pharmacists, techs, floor staff, managers, admin etc.)
•3-5 pharmacists per store (including 1-2 staff, 1 rxm, 1-2 floaters, 1-2 paid interns/grad interns)
•Pharmacists make on average 3x more than one of aforementioned workers

Based on above assumptions, if there are 3 pharmacist FTEs allocated to each store then
(3x3)/(3x3 +27x1) = 25%. This means that pharmacists make up about 25% of each store’s payroll. Therefore, if store employees and pharmacists are laid off at the same ratios then $700m x 25% = $175m is the total salary of pharmacists that needs to be cut.

My severance estimate is a gross overestimation of what will actually be paid to pharmacists and in reality most pharmacists will likely get a 6-10 week package. So assuming a $60/hr 40 hr rate, the average severance package for a pharmacist using 10 weeks would come out to be $24k pretax. $175m/$24k ~ 7,300 pharmacists that need to go.

I’m sure that there are back-end adjustments and maybe even corporate layoffs (that don’t affect front-line staff) that can skew these numbers but I think it would be easy to see them laying off at least 1,000 pharmacists based on these numbers, don’t you think?
 
Pharmacy is a Scam said:
Here are some assumptions I’ll make to try and do a better estimate:

•Average number of workers per store = 30 (pharmacists, techs, floor staff, managers, admin etc.)
•3-5 pharmacists per store (including 1-2 staff, 1 rxm, 1-2 floaters, 1-2 paid interns/grad interns)
•Pharmacists make on average 3x more than one of aforementioned workers

Based on above assumptions, if there are 3 pharmacist FTEs allocated to each store then
(3x3)/(3x3 +27x1) = 25%. This means that pharmacists make up about 25% of each store’s payroll. Therefore, if store employees and pharmacists are laid off at the same ratios then $700m x 25% = $175m is the total salary of pharmacists that needs to be cut.

My severance estimate is a gross overestimation of what will actually be paid to pharmacists and in reality most pharmacists will likely get a 6-10 week package. So assuming a $60/hr 40 hr rate, the average severance package for a pharmacist using 10 weeks would come out to be $24k pretax. $175m/$24k ~ 7,300 pharmacists that need to go.

I’m sure that there are back-end adjustments and maybe even corporate layoffs (that don’t affect front-line staff) that can skew these numbers but I think it would be easy to see them laying off at least 1,000 pharmacists based on these numbers, don’t you think?
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You are completely overthinking this. Walgreens isn't going to close high script count stores. They are going to close tier 1 stores. These stores are completely staffed by 2 pharmacists.
 
I had an interview with WAGS late july, early august.....they offered me a float spot in florida. 54/hr and 32/hr week. But the catch was I had to move from CO and take the job by august 20, or "our rates are dropping"..... the balls on these guys to tell me that...... i said no a few days later. like i wanna move from an 80 hr PIC spot (which IS horrible) , but to a float spot where i could be cut any time, and do it by their deadline or my pay will decrease.... go F**K yourselves....
 
sozetone said:
I had an interview with WAGS late july, early august.....they offered me a float spot in florida. 54/hr and 32/hr week. But the catch was I had to move from CO and take the job by august 20, or "our rates are dropping"..... the balls on these guys to tell me that...... i said no a few days later. like i wanna move from an 80 hr PIC spot (which IS horrible) , but to a float spot where i could be cut any time, and do it by their deadline or my pay will decrease.... go F**K yourselves....
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as least they were honest with about the rate. other dm's probably wouldn't have told you
 
Pharmacy is a Scam said:

In their latest SEC filing, WAGs is expecting a cost of $200-300m due to “lease obligations and real estate costs.” This is consistent with their aforementioned 200+ store closure.

But the real gem is this: a $600-700m cost for “employee severance and business transition” effective Sept 1. Now, I’m no math whiz but a simple calculation dictates that thousands will have to be laid off in order to achieve a sum of $700m. Assuming they paid out each pharmacist $200k, they’d have to lay off 3,500 pharmacists in order to reach that figure.

So is doomsday Sept 1? Guess we’ll see in a week!
Click to expand...

They may not try to reach that figure entirely, ya know? just plug the holes in the dam.....Still, something ugly is probably coming......
 
It sounds like it is still not publicly known what Walgreens are gonna get cut.

I think it's remarkable since it's been 3 weeks. When Walmart announced store closures nationwide in 2016 the stores were identified immediately. Also when Walmart closes individual stores here and there throughout the year you might get told the week before if you're a store manager or RXM (obviously not supposed to share that info with direct reports), then the announcement is made the following week. There are no overt signs the store is closing prior to that (I am speaking from personal exp here), unless you want to consider "complex" store status to be a sign but that's not atypical given that Walmart takes like ~20% of SNAP funds
 
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Sine Cura said:
It sounds like it is still not publicly known what Walgreens are gonna get cut.

I think it's remarkable since it's been 3 weeks. When Walmart announced store closures nationwide in 2016 the stores were identified immediately. Also when Walmart closes individual stores here and there throughout the year you might get told the week before if you're a store manager or RXM (obviously not supposed to share that info with direct reports), then the announcement is made the following week. There are no overt signs the store is closing prior to that (I am speaking from personal exp here), unless you want to consider "complex" store status to be a sign but that's not atypical given that Walmart takes like ~20% of SNAP funds
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Walgreens will never release a "list" of closures....it all happens kinda quiet and stealth-like. Store employees literally find out a week or two before. That being said... there are probably employees at low-performing stores that can see the writing on the wall now.
 
ApothNYC/LA said:
Walgreens will never release a "list" of closures....it all happens kinda quiet and stealth-like. Store employees literally find out a week or two before. That being said... there are probably employees at low-performing stores that can see the writing on the wall now.
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For real, they get like almost no notice. The Walgreens in the area I previously was at, the 24 hour ones were being change to 8am-10pm hours. The overnight pharmacist there were out of their positions and turned to floaters and they only found out about it like 3? days in advance.
 
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mentos said:
I hope so, that means stocks, real estate and vehicles will be cheap.
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Yeah but you are in a profession that is going downhill. It might not be your job today but imagine looking out the window and seeing a line of pharmacist. Imagine how your boss would treat you then.
 
BMBiology said:
Yeah but you are in a profession that is going downhill. It might not be your job today but imagine looking out the window and seeing a line of pharmacist. Imagine how your boss would treat you then.
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There already is a line. I'm riding the gravy train as long as possible. I know it won't last.
 
sozetone said:
All the money i made out here in BFE CO, im thinking of someones foreclosure on siesta Key , west coast florida? On the inlet, a small boat perhaps? Cooking fresh caught Grouper on the BBQ after a nice days fishing.....Yeah i'll be patient and capitalize on that......you guys are welcome over for deep sea fishing.....lol
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True story about foreclosures in Florida - my friend was transferred by his company from Orlando to Conn - company bought his house for 380k. 3 years later company transferred him back to Orlando - company still owned house because they couldn't sell it (2008ish financial collapse) over half the houses on the street were in foreclosure. Company sold house back to my friend for 220k.
 
Dred Pirate said:
True story about foreclosures in Florida - my friend was transferred by his company from Orlando to Conn - company bought his house for 380k. 3 years later company transferred him back to Orlando - company still owned house because they couldn't sell it (2008ish financial collapse) over half the houses on the street were in foreclosure. Company sold house back to my friend for 220k.
Click to expand...

Imagine in 20-30 years when all the coastal cities are underwater.
 
BMBiology said:
Yeah but you are in a profession that is going downhill. It might not be your job today but imagine looking out the window and seeing a line of pharmacist. Imagine how your boss would treat you then.
Click to expand...

He treats us all like crap now....
 
sozetone said:
All the money i made out here in BFE CO, im thinking of someones foreclosure on siesta Key , west coast florida? On the inlet, a small boat perhaps? Cooking fresh caught Grouper on the BBQ after a nice days fishing.....Yeah i'll be patient and capitalize on that......you guys are welcome over for deep sea fishing.....lol
Click to expand...

Sounds great! I will bring beer!

nickw2401 said:
thank god i dont work retail
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You don't think this is affecting hospitals and every other place that hires pharmacists?
 
mentos said:
Yup pharmacy is a dying profession. That's why I've been saving up to prepare for my next career once the gravy train ends.
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Same here - I’m doing just fine I’m pharmacy but if I ever find myself at a point where I need to jump ship I’m ready. I have been preparing a backup option in nursing home administration.

What are you looking at?
 
Chrish said:
Which also means you may not have a job.
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I think what he is hinting at is - many very rich individuals have been made rich riding the coattails of a solid recession. It is the ultimate low point of “buy low sell high” mentality. A skilled investor sees massive opportunity in a recession
 
JustFillIt said:
Same here - I’m doing just fine I’m pharmacy but if I ever find myself at a point where I need to jump ship I’m ready. I have been preparing a backup option in nursing home administration.

What are you looking at?
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Maybe start a franchise. Hopefully get a good deal on investment properties or stocks. My friend bought as much stocks as he could afford in 2008/2009 and then bought a house in San Francisco a couple years later. I know that success can't be replicated, but if we prepare now we will be able to take advantage of good deals.
 
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mentos said:
Yup pharmacy is a dying profession. That's why I've been saving up to prepare for my next career once the gravy train ends.
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Thats exactly what EVERY pharmacist should be doing.....Manage, as horrible as it is.....right? jump around if you have to.....save the big bucks and dump out in 3-5. Everyone is looking for talented managers now.....nobody wants the job! In 3-5 the BOP may remove mandatory PIC , nothing would shock me at this point.....
 
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