Walgreens CEO Rosalind Brewer quits after less than three years

Bengaluru — Walgreens Boots Alliance CEO Rosalind Brewer has stepped down, the US pharmacy chain operator said on Friday, less than three years after the former Starbucks executive took the top job.

Brewer’s departure was part of a mutually agreed decision, Walgreens said, without providing further details, after a tenure that saw the company's share price nearly cut in half as it tried to broaden its reach as a healthcare provider.

The company named lead independent director Ginger Graham as interim chief as it launched the search for a permanent CEO.

The timing of announcement is likely to take many by surprise, said Evercore ISI analyst Elizabeth Anderson, adding that the event itself was not surprising, partly due to a steep fall in Walgreens stock.

The stock is down about 32% in 2023 as the company’s pharmacy unit comes under pressure from a steeper-than-expected fall in demand for Covid-19 tests and vaccines.

Shares are down roughly 47% since March 2021, when Brewer joined the company from Starbucks.

Walgreens made a series of deals during her tenure to push deeper into healthcare and pivot from its core pharmacy business by operating doctors’ offices and offering more services.

“With the increased focus on growing the Walgreens Healthcare segment ... it makes sense to retrench and search for a new leadership team with more extensive backgrounds in healthcare services,” Anderson said.

Brewer will remain as a special adviser to the end of February and will receive a monthly consulting fee of $375,000, Walgreens said.

The pharmacy chain operator said it expects full-year 2023 adjusted earnings per share to be at or near the low end of its prior forecast.

Reuters