Rite Aid eliminating 400 full-time positions as company restructures
CUMBERLAND COUNTY, Pa. — Rite Aid announced Tuesday that it is eliminating 400 full-time positions.
The news follows the Camp Hill-based company’s decision to restructure organizationally and reduce costs, resulting in the reduction of managerial layers and the consolidation of roles.
The elimination accounts for more than 20% of Rite Aid’s corporate positions at its Camp Hill headquarters as well as across the field organization, the drug store chain said.
Approximately two-thirds of the reductions will take place immediately, the company added. The other one-third of eliminated positions will occur by the end of fiscal year 2020.
Rite Aid also announced that John Standley will step down as chief executive officer when the company appoints his successor, and other management changes, which are as followed:
- Bryan Everett — formerly chief operating officer of Rite Aid Stores — has been promoted to chief operating officer of the company, succeeding Kermit Crawford who is leaving.
- Matt Schroeder — formerly chief accounting officer and treasurer — has been promoted to chief financial officer, succeeding Darren Karst who is leaving this spring.
- Brian Hoover — formerly group vice president and controller — has been promoted to executive vice president of pharmacy and retail operations.
- Derek Griffith — formerly executive vice president of store operations — is leaving the company.
Rite Aid said that it expects to save approximately $55 million in annual costs, $42 million of which will be saved within the next fiscal year.
“Rite Aid’s Board of Directors is committed to more closely aligning the structure and leadership of the Company with our present scale and today’s announcement is an important step in positioning Rite Aid for future success,” said Bruce Bodaken, chairman of Rite Aid’s Board of Directors. “These are difficult decisions and we recognize the implications they have for individuals across our organization. However, it is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company.”