Walgreens to close Houston distribution center

Walgreens plans to shut down its Houston distribution center, as detailed in a Worker Adjustment and Retraining Notification (WARN) notice obtained by Supply Chain Dive.

“We have made the difficult decision to close our Houston Distribution Center. We sincerely thank the team members at that location for their dedication and contributions. By streamlining service and deliveries from a single source—the Waxahachie Distribution Center—we believe we can better serve our customers while reducing workload for our store teams,” a Walgreens spokesperson said.

Walgreens cutting workforce

The chain said it is simplifying its organization to speed up decision making in a move that would impact at least 600 employes.

Chain Drug ReviewBill Schiffner

The shutdown will affect 159 workers, with permanent layoffs scheduled to begin June 1, per the Feb. 12 notice. Impacted employees will continue receiving full pay and benefits for 60 days or until they choose to resign. Walgreens is also offering on‑site career fairs and outplacement support.

Walgreens expands micro-fulfillment network with new facility in West Jordan, Utah

The micro-fulfillment center (MFC) will support nearly 96 stores across the region.

Chain Drug ReviewBill Schiffner

This Texas closure is part of a broader restructuring at the company. Elsewhere in its supply chain, Walgreens is expanding the use of micro‑fulfillment centers that automate prescription processing and distribution for retail stores.