Rite Aid unveils restructuring; CEO Standley, CFO Kast, others to depart

|About: Rite Aid Corporation (RAD)|By:, SA News Editor

Rite Aid (NYSE:RAD) +4.6% after-hours on news that CEO John Standley and other top executives are leaving the company in a restructuring aimed at cutting costs.

RAD says it will reduce managerial layers and consolidate roles, eliminating ~400 full-time positions, with about two-thirds of the layoffs occurring immediately and the rest taking place by the end of FY 2020.

As a result of the restructuring, RAD expects to achieve $55M in annual cost savings, with $42M realized within FY 2020, and will incur a one-time $38M restructuring charge to achieve the targeted cost savings.

In addition to Standley, COO Kermit Crawford and CFO Darren Kast will leave the company, to be replaced by current COO of Rite Aid Stores Bryan Everett and Chief Accounting Officer Matt Schroeder, respectively.

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