Walgreens it is the last chain for him mass facial closures.

On Thursday, Walgreens announced it would close a “significant” number of underperforming stores across the country.

“The current pharma model is not sustainable,” CEO Tim Wentworth told investors on an earnings call. “Changes are inevitable.”

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Wentworth said it would “carefully redeploy” 25% of its stores over the next three years with the potential for closures, meaning 2,150 stores could close.

Walgreens currently operates 8,600 stores.

“The consumer is absolutely stunned by the absolute prices of things and the fact that some of them may not be inflated doesn't actually change their resistance to the current price,” Wentworth told investors. “So we've had to be really keen, especially on the discretionary stuff.”

Shares of Walgreens Boots Alliance fell more than 24% in a 24-hour period following the release of its fiscal third-quarter 2024 earnings, which reported $36.4 billion in revenue.

The company revealed that it had been hit with a $2.7 billion bill by the IRS after the agency conducted audits and reportedly found problems with Walgreens' transfer pricing between 2014 and 2017.

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“The company intends to vigorously defend its position on the transfer pricing issue through the IRS administrative appeals office and, if necessary, court proceedings and is confident in its ability to prevail on the merits,” Walgreens said via appearance at that time.

As of Thursday afternoon, Walgreens Boots Alliance was down nearly 59% year over year.