Walgreens announced that it will shutter 1,200 stores over the next three years — and 500 locations in 2025 alone — as the drugstore giant seeks to slash $1 billion in costs.

The Chicago-based pharmacy chain, which has around 8,700 locations nationwide, told analysts on Tuesday that one in four of its stores are unprofitable.

The company has been hit by sluggish consumer spending amid stubbornly high inflation, as well as low drug reimbursement rates, which is the amount of money that healthcare providers or pharmacies are paid for dispensing prescription medications to patients.

The closures were announced in June but the company had not disclosed the number of affected stores at that time. At the time, Walgreens said it could shutter up to a quarter of stores, which is more than 2,000 locations.