Bernie Sanders Targets Walgreens Owner As Workers Lose Holiday Pay — Demands Answers On Layoffs And Executive Pay

• Sanders criticized Walgreens’ private equity owner after hourly workers lost paid holidays following the buyout.
• He warned that cost-cutting could lead to layoffs, citing past outcomes at other Sycamore-owned companies.
• Sanders also demanded disclosure on executive pay, profits, and the number of workers affected by the changes.

U.S. Senator Bernie Sanders has pressed the private equity firm that recently acquired Walgreens over its decision to cut paid holiday time for hourly workers, raising concerns about potential layoffs and executive compensation as the holiday season approaches.

Holiday Pay Cuts After $10B Buyout

In a post on X, Sanders shared a letter dated Dec. 23 that he sent to Sycamore Partners founder and managing director Stefan Kaluzny, saying Walgreens told hourly employees earlier this fall that they would no longer receive paid time off for major holidays, including Thanksgiving, Christmas and New Year’s Day.

Sanders said the change came just two months after Sycamore completed its roughly $10 billion acquisition of Walgreens in August. He wrote that hourly workers were forced to choose between losing pay and spending holidays with their families, calling on the firm to reverse the decision.

Walgreens employs about 220,000 workers, the majority of whom are paid hourly, according to the letter.

Focus On Private Equity Track Record

Sanders said the move tracks what he described as a wider private equity trend of siphoning profits while reducing worker pay. In the letter, he referenced prior Sycamore-owned companies, such as Staples and Nine West, noting store closures, layoffs and bankruptcy filings after those purchases.

He pointed to wage-and-hour and workplace safety violations at companies previously owned by Sycamore between 2016 and 2022, as well as store closures, layoffs and a bankruptcy at other portfolio companies, arguing that Walgreens workers could face similar pay cuts or job losses if cost-cutting intensifies.

Questions On Layoffs And Executive Pay

Sanders asked Sycamore to respond by Jan. 13, pressing the firm on how many Walgreens employees have lost paid holidays and whether more cuts to pay or benefits are coming. He also sought clarity on whether layoffs are being considered.

The senator also asked for details on how much Walgreens executives are paid, including salaries and bonuses, alongside information on Sycamore’s expected profits and the compensation of its investment staff.

On Stocktwits, retail sentiment for Walgreens Boots Alliance was ‘bullish’ amid ‘normal’ message volume.

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