Shakeup at Rite Aid: CEO, COO and CFO leaving; 400 jobs cut

There's been a big shakeup at the top at Rite Aid.

The drugstore chain announced late Tuesday that John Standley will step down as CEO, staying on until the appointment of his successor. In other changes that are effective immediately, Bryan Everett, COO of Rite Aid Stores, has been promoted to COO of the company, succeeding Kermit Crawford who is leaving. And Matt Schroeder, chief accounting officer and treasurer, has been promoted to CFO, succeeding Darren Karst who will leave the chain this spring after supporting a brief transition.

"The board believes that now is the right time to undertake a leadership transition," said Bruce Bodaken, chairman of Rite Aid's board. "We will be focused on recruiting a leader that will best position Rite Aid to create long-term value for shareholders. We thank John [Standley] for his outstanding leadership in guiding the company over the past several years.

In addition, Rite Aid said it is reducing management layers and consolidating roles across the organization, resulting in the elimination of approximately 400 full-time positions, or more than 20% of the corporate positions located at the company's headquarters and across the field organization. Approximately two-thirds of the reductions will take place immediately, with the balance by the end of fiscal 2020.

"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 Bodaken. "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."

This is a developing story. Check back later for updates.