Walgreens is laying off more than 600 employees nationwide following its acquisition by private equity firm Sycamore Partners, according to company letters cited in a Bloomberg News report.

The job reductions include 469 positions in Illinois and an additional 159 roles in Texas, where Walgreens is closing a distribution center. The company has not publicly commented on the reported layoffs.

Walgreens was taken private last year in a $10 billion deal after struggling with declining margins, operational missteps, and intensified competition from lower-cost rivals such as Amazon and Walmart.

Sycamore Partners, which focuses on retail and consumer-sector investments, is reportedly moving to streamline operations by reducing staffing levels and scaling back certain employee benefits, including paid holidays for some workers. The firm is also said to be pursuing revenue growth strategies, including expanding product offerings in select stores.

The investment firm has previously acquired distressed retail brands including Staples, Talbots, and Nine West, often restructuring operations in an effort to restore profitability.

The layoffs mark another significant shift for Walgreens as it restructures under private ownership in a highly competitive retail pharmacy landscape.