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March 15, 2024

Walgreens plans to close Killingly distribution center, cut 322 jobs

CoStar Walgreens plans to close this distribution center in the Dayville section of Killingly and lay off 322 people.
By David Krechevsky

Walgreen Co., which operates the Walgreens pharmacy chain, has announced plans to close a Connecticut distribution center and lay off 322 workers.

In a Worker Adjustment and Retraining Notification Act (WARN) notice filed Thursday with the state Department of Labor’s Dislocated Worker and Rapid Response units, the company said it plans to close its distribution center located at 500 Forbes Road in the Dayville section of Killingly “on or about May 17, 2024.” 

“As Walgreens continues to work on solutions to help build business momentum and improve the efficiency of our operations, we have looked closely at our distribution center network, streamlining capacities wherever possible to best support our stores,” states David E. Metz, senior director, employment law, for Walgreens, who signed the notice.

Metz said the closing will affect 322 employees, and that separations are expected to commence on or about May 17. He added that “various factors” could affect the timing of layoffs.

“We anticipate that these changes, when finalized, would be permanent, and they would involve the entire facility,” he said.

Under the federal WARN Act, a company with 100 or more full-time employees is required to provide notification at least 60 calendar days in advance of a planned closing and/or mass layoff.

According to the notice, all affected employees will remain employed and receive their full pay and benefits for the entire 60-day period or until they resign, whichever occurs first.

“We expect these reductions in force to be permanent, and we will provide all affected employees with the opportunity to participate in onsite career fairs and/or outplacement services to assist with their transition to other employment,” the notice states. 

It adds that the affected employees are not represented by a union and that bumping rights are not available.

Walgreens sold the 460,362-square-foot distribution center in Dayville last April for $48.07 million to Rim Properties 1, which is affiliated with San Diego-based Realty Income Corp., a real estate investment company listed on the S&P 500.

Under that deal, Walgreens leased back the property under a 15-year agreement that began April 13, 2023 and offered six five-year extensions.

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