Walgreens Company
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Walgreens Company has served the needs of customers since 1901. The store was originally a Chicago drug store which was then turned into Walgreens Pharmacy. Walgreens offers variety of supplies such as medicine, oral and hygiene products, canned foods and drinks/alcohol, hair products, and lots more. One hundred years later, Jeffrey A. Rein took over as the newest Chairman and CEO of Walgreens company.
In 2011, Walgreens now operates in over 30 states with 7,000 locations open, some even 24 hours a day. With an organization doing so well and expanding so quickly, one would imagine Walgreens to be problem free. Unfortunately with the dip in the economy, Walgreens must now take drastic measures to decrease expense in the organization. The plan is called the WAG Rewiring for Growth. Rewiring basically means cutting expense in the organization. Walgreens wants to rewire 1 billion dollars in expense.
Walgreens has chosen to outsource over 150 accounting jobs to a company located in India called Genpact. 150 workers from Chicagos headquarters location will lose their jobs due to outsourcing to the newest accounting company doing accounting work for Walgreens called Genpact. Genpact will open a location in Danville Illinois where 500 former Walgreen accountants will now be working for Genpact. Another 150 jobs scattered among the nation will also lose their jobs due to budget cuts and outsourcing.
The remaining workers of Walgreens accounting department will be shifted around too different locations and also have drastic pay cuts and different positions within. This has caused a lot of tension within Walgreens corporate accounting department. By outsourcing the jobs to Genpact in India, Walgreens will save about 1 billion dollars in expense per year. Unfortunately this means over 700 employees in the company will be fired, moved to a different location or given a pay cut.
Walgreens is in the process of outsourcing jobs within the year so that beginning next year; every position in the accounting department will be affected. The position changes can be as drastic as a move from the corporate office to a front counter clerk at a local store. Employees are furious with the decision of Walgreens. Even though the company will save over 1 billion dollars in expense per year, employees still feel the right to keep their positions and pay.
Employees feel as though the decision to outsource was made without any regard to the loss of jobs and unhappiness feelings within. Employees of Walgreens are trying to boycott the outsourcing plan of Walgreens even though the organization has already established contracts with Genpact and is in the process of outsourcing. Walgreens has not shown any concern for employees jobs and possible termination. The company hasnt created a plan to help terminated employees search for new work. This is another reason why the employees of Walgreens