Thomson Reuters
- Rite Aid said on Tuesday that its CEO will be stepping down and it will be eliminating about 400 corporate jobs.
- It said the layoffs will affect more than 20% of positions at the company’s headquarters and across field operations.
- John Standley, CEO since 2010, will remain in the post until the appointment of his successor, the company said.
Rite Aid Corp said on Tuesday its chief executive officer would exit as part of a revamp of its top deck, and that it would slash about 400 job corporate positions.
Camp Hill, Pennsylvania-based Rite Aid said the layoffs will affect more than 20 percent of corporate positions located at the company’s headquarters and across field operations.
The company expects annual savings of about $55 million from the restructuring, of which about $42 million will be realized within fiscal year 2020.
It also expects to incur a one-time charge of about $38 million related to the restructuring.
John Standley, CEO since 2010, will remain in the post until the appointment of his successor, the company said.
It also said Chief Financial Officer Darren Karst and Chief Operating Officer Kermit Crawford would also leave the company.
The company named Chief Accounting Officer Matt Schroeder as the new CFO and Bryan Everett as the COO. Everett is currently the COO of Rite Aid Stores.
Rite Aid and U.S. grocer Albertsons Companies Inc had terminated a $24 billion merger in August last year after Rite Aid’s shareholders opposed the deal.
Rite Aid’s shares, which closed down about 2 percent on Tuesday, were up about 12 percent at 76 cents in extended trade.
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Source: Business Insider –