Rite Aid cuts 400 jobs, stocks soar

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RITE AID

PACIFICA, CA – FEBRUARY 20: A Rite Aid store stands next to a SAfeway store at the Fairmont Center on February 20, 2018 in Pacifica, California. Grocery chain Albertsons, a subsidiarie of Safeway Inc., announced that it will acquire Rite Aid in a cash and stock deal (Photo by Justin Sullivan/Getty Images)

Rite Aid is undergoing spring cleaning of its C-suite: It’s ousting its CEO, CFO, COO and eliminating 400 corporate jobs in a bid to save $55 million.

Current CEO John Standley will remain in the position until his successor his named, while the CFO and COO positions were replaced with internal employees.

Walgreen’s bought approximately half of Rite Aid’s stores in 2017.

One year later, Rite Aid investors blocked the company’s plan to sell to Albertsons.

It has 2,500 stores — fewer than its rivals.

Rite Aid’s Board of Directors is committed to more closely aligning the structure and leadership of the Company with our present scale,” the company said in a statement.

Shares are up 20% in premarket trading.

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