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Shares of Rite Aid Corp.
RAD -2.02%
rose 3% in the plenary on Tuesday after the pharmacy chain said chief executive John Standley and other top executives were leaving the company amid restructuring to cut costs. Rite Aid "will reduce management levels and consolidate roles throughout the organization", eliminating approximately 400 full-time positions, or more than 20% of jobs in companies headquartered in Pennsylvania and overall of the society. About two-thirds of the layoffs will take place immediately, the rest to take place by the end of the 2020 fiscal year, said Rite Aid. The company expects to realize cost savings of approximately $ 55 million annually through the reorganization, of which approximately $ 42 million will be realized in fiscal year 2020, he said. Rite Aid expects a single restructuring charge of about $ 38 million to realize the expected savings. In addition to Standley, Chief Operating Officer Kermit Crawford, Chief Financial Officer Darren Kast and Executive Vice President Derek Griffith leave the company. Standley will remain in office until the appointment of a successor, said Rite Aid. "These are difficult decisions and we recognize the consequences for people across our organization, but it is imperative that we take steps to reduce the cost of current operations and become a more efficient and effective company. more profitable, "said Chairman Bruce Bodaken. declaration. The actions of Rite Aid ended the ordinary session down 2%.
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