Walgreens Plans to Close 1,200 U.S. Stores to Boost Struggling Business [Video]

Walgreens has announced plans to shut down around 1,200 stores over the next three years while the drugstore chain tries to reverse a struggling U.S. business that has reported a $3 billion loss in its latest quarterly report.

In a statement released on Tuesday, the company revealed that around 500 of the closures will take place in the current fiscal year to bolster adjusted earnings and free cash flow.

While Walgreens operates around 8,500 stores in the U.S., the exact locations set to close have not yet been revealed.

The decision follows an announcement from Walgreens Boots Alliance Inc. managers in June that a turnaround plan for its U.S. operations was in the works, likely involving the shutdown of numerous underperforming stores.

The newly announced plan includes the closure of 300 locations that had already been earmarked under a previous cost-reduction initiative.