Walgreens has named a new head of its healthcare unit as the pharmacy chain works to improve its halting finances and shift to delivering more healthcare services.
John Driscoll, the current executive vice president and president of the U.S. Healthcare segment, will be replaced by Mary Langowski, who previously held the chief executive role at chronic condition management company Solera Health. Driscoll will serve in a senior advisory role, Walgreens announced Thursday.
Driscoll joined Walgreens in October 2022 when the company entered into an agreement to acquire the remaining stake in at-home care provider CareCentrix, where he was CEO.
Before working at Solera, Langowski served as chief strategy and corporate development officer at competitor CVS Health. She led efforts for CVS’ healthcare strategy, including parts of the company’s 2018 acquisition of insurer Aetna, according to a press release.
The leadership shakeup comes as Walgreens has struggled to drive profitability in its U.S. Healthcare segment, which includes businesses like CareCentrix, primary care provider VillageMD and specialty pharmacy Shields Health Solutions.
U.S. Healthcare posted sales of $1.9 billion in first-quarter results reported in early January, compared with $989 million in the prior-year period. But U.S. Healthcare still reported a $96 million adjusted operating loss, compared with a $152 million loss in 2022.
The pharmacy chain has also conducted multiple rounds of layoffs over the past year — including 145 job cuts confirmed this month — and reworked its C-suite.
Walgreens CEO Tim Wentworth, a former Cigna executive, joined the company in the fall, replacing former CEO Roz Brewer. Other recent departures include the chain’s CFO, CIO, chief medical officer and chief marketing officer.
The company announced other new executive appointments on Thursday. Manmohan Mahajan, who has held the interim role since July, was appointed executive vice president and global chief financial officer. He joined Walgreens in 2016, and previously worked at GE Capital.
Elizabeth Burger was named executive vice president and chief human resources officer. The new executives will take up their new roles in March.
