Rite Aid Laying Off 1,000 Employees, Auctioning Off Locations

Rite Aid is laying off 1,000 workers and will be auctioning off roughly 1,200 locations to the highest bidders, according to Costar.

FOX News reports that Rite Aid is struggling to stay afloat and has filed for a second Chapter 11 bankruptcy in only a year's time.

With this bankruptcy filing comes some major shakeups to the footprint of one of the Top 3 drug store chains in the United States: ABC-27 out of Pennsylvania is reporting that there will be 1,000 employees let go as well as over 1,000 Rite-Aid locations that will go up for auction; 350 of which are in Pennsylvania alone.

According to a WARN Notice, Rite Aid will lay off 501 employees at a York County, Pennsylvania office and 595 employees at its Philadelphia office on Intrepid Avenue.

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Some of these layoffs happened earlier this month, and some will happen on June 4.

Rite Aid has been struggling — as have rivals CVS and Walgreens — since the COVID pandemic. Rite Aid first filed for bankruptcy once in 2024. There is more and more competition these days, as giant retail outlets like Amazon and Walmart have stepped up their prescription services.