On March 12, 2019 Rite Aid Corporation announced a leadership transition plan and organizational restructuring to align its structure with operations and reduce costs. John Standley will step down as CEO, while the Board searches for a new CEO. Standley will remain CEO until his successor is appointed.
Rite Aid also announced it would reduce managerial layers and consolidate roles across the organization, resulting in the elimination of approximately 400 full-time positions, or more than 20 percent of corporate positions located at its headquarters and across field operations. Two-thirds of the reductions will take place immediately. Rite Aid expects to achieve annual cost savings of approximately $55 million, of which approximately $42 million will be realized within fiscal year 2020.
Rite Aid also announced the promotion of Rite Aid Stores’ COO Bryan Everett to COO of the company, succeeding Kermit Crawford who will leave the organization. Chief Accounting Officer and Treasurer Matt Schroeder has been promoted to CFO. Schroeder will replace Darren Karst who will leave the company in Spring after. Brian Hoover, group vice president and controller, has been promoted to chief accounting officer. Jocelyn Konrad, executive vice president, pharmacy, has been promoted to executive vice president, pharmacy and retail operations, while Derek Griffith, executive vice president, store operations will leave the company. Rite Aid will consolidate additional senior leadership roles, eliminating certain positions.
“Rite Aid’s Board of Directors is committed to more closely aligning the structure and leadership of the company with our present scale, and today’s announcement is an important step in positioning Rite Aid for future success,” said Bruce Bodaken, chairman of Rite Aid’s Board of Directors. “These are difficult decisions, and we recognize the implications they have for individuals across our organization. However, it is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company,” Bodaken said.
“The Board believes now is the right time to undertake a leadership transition. We will be focused on recruiting a leader that will best position Rite Aid to create long-term value for shareholders. As we conduct the search process, John has agreed to stay until we appoint his successor. We thank John for his outstanding leadership in guiding the company during the past several years,” Bodaken added.