Walgreens CEO appoints finance chief, new healthcare unit head
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FILE PHOTO: People walk by a Walgreens, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York City, U.S., November 26, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) -Walgreens Boots Alliance's CEO Tim Wentworth on Thursday finalized the appointment of its finance chief and named a new head of its nascent healthcare unit, as he aims to turn around a dive in the company's stock price.
The pharmacy chain operator's stock has declined 38% in the last twelve months as Walgreens grapples with waning demand for COVID products and decreased spending on personal care and beauty products by inflation-weary consumers.
Wentworth named Manmohan Mahajan, who has been with the company since 2016, as the chief financial officer.
Mahajan has held the position on an interim basis since July last year, when former finance chief James Kehoe had stepped down to pursue an opportunity in the technology sector. He has led the pharmacy chain's cost saving efforts, including a $1 billion cost cut program announced in October.
Kehoe's departure was quickly followed by an abrupt exit of the pharmacy chain's then CEO Rosalind Brewer in September. Walgreens appointed healthcare industry veteran Wentworth a month later.
The pharmacy chain also appointed Mary Langowski as the new head of its U.S. healthcare unit, which is targeting to break-even this year.
Langowski was most recently the CEO of private firm Solera Health and has previously held executive positions at rival CVS Health
Walgreens' U.S. healthcare unit, which incurred a loss of $566 million in fiscal 2023, includes primary care provider VillageMD, specialty pharmacy Shields and at-home care provider CareCentrix.
It is aimed at expanding the pharmacy chain's focus beyond the core business.
Last month, Walgreens nearly halved its dividend payout in an attempt to conserve cash.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Shailesh Kuber and Krishna Chandra Eluri)
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