"Walgreens Confronts Labor Struggles and Dividend Cut Despite Earnings Uptick"
Walgreens has cut its dividend payment by nearly half to strengthen its balance sheet, resulting in an 11% drop in stock price. The company faces challenges such as a labor shortage, particularly in recruiting pharmacists, and is responding by partnering with pharmacy schools and increasing automation. Additionally, Walgreens is reducing its store count to help manage labor issues. The company is also dealing with increased shrink (loss due to theft or other reasons), which is affecting the retail side of the business. Despite these challenges, efforts are being made to maximize efficiency and address the labor market issues.