Amid a $1.8 billion cost-cutting effort, Walgreens (WBA) has reportedly laid off an undisclosed number of employees at its corporate headquarters, in addition to closing several of its healthcare clinic locations.

Employees of the company were notified last week about the layoffs, Walgreens spokesman Jim Cohn told CNBC in an email. Cohn also said Walgreens was “modifying our corporate support office structure to drive organizational efficiencies and reduce our cost base, while promoting investment in truly differentiating capabilities.”

The news of the layoffs comes after Walgreens announced it was closing 200 locations in August, as it reviewed its store portfolio. The layoffs reportedly will not affect any store positions or additional locations, according to Cohn.

Beyond the layoffs at its U.S. corporate headquarters, Walgreens is also reportedly shutting down several of its health clinics.

According to St. Louis CBS affiliate KMOV, 40% of Walgreens health clinics would be closed, totaling about 150 locations. Walgreens will reportedly keep 200 clinics open that are run in partnership with other healthcare providers.

“Effective as of December 31, Walgreens will be exiting the business of company-managed Walgreens Healthcare Clinics. Moving forward, the clinics will either be permanently closed, transition to be owned and operated by Health System Partners or the space will be repurposed with new health services and health delivery options,” according to a company email shared with KCTV, a CBS affiliate in Kansas City.

On Monday, James Kehoe, Walgreens CFO, told analysts during the company’s fiscal Q4 earnings call that “select reductions were made at its headquarters in Deerfield, Illinois.

Kehoe went on to say that “additional restructuring is underway in our retail pharmacy international, and pharmaceutical wholesale divisions are also working hard to define our new vision.”

Shares of Walgreens stock were down 0.14% as of 12:02 p.m. ET on Monday.

The Walgreens sign is pictured at an outlet in Westminster, Colorado
The Walgreens sign is pictured at an outlet in Westminster, Colorado Reuters
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