Rite Aid Set To Lay Off Hundreds Employees At In Philly
Rite Aid is set to lay off hundreds of employees at its Philadelphia headquarters as part of a broader restructuring effort following its second Chapter 11 bankruptcy filing in two years. The company, which once operated over 5,000 stores, has faced mounting financial pressures, including declining sales, opioid-related lawsuits, and intense competition from larger retailers like CVS and Walgreens.
The layoffs are part of Rite Aid’s plan to reduce costs and streamline operations. While the exact number of job cuts has not been disclosed, the company has previously announced plans to close hundreds of stores nationwide and reduce its corporate workforce in Pennsylvania . Employees at the Philadelphia headquarters have expressed concerns about the uncertainty surrounding their positions and the company’s future direction.
In addition to the layoffs, Rite Aid has faced criticism for its handling of severance payments to laid-off workers. In March 2024, the company unexpectedly reversed severance payments that had already been deposited into employees’ accounts, causing financial hardship for some workers. Following public outcry and intervention from state lawmakers, Rite Aid agreed to honor its severance obligations and implement measures to prevent similar issues in the future.
As Rite Aid navigates its financial challenges and restructures its operations, the impact on its employees and the communities it serves remains a significant concern.
