VillageMD CEO Tim Barry has resigned, and Chief Operating Officer Jim Murray has been appointed as interim CEO.
The reason for Barry's departure was not disclosed.
This change in leadership comes at a time when parent company Walgreens Boots Alliance is facing significant profitability challenges.
In FY24, the company reported a net loss of $8.6 billion and plans to close 1,200 underperforming stores by 2027.
VillageMD, the healthcare unit, has also been struggling, with a loss of $134 million last year.
Walgreens CEO Tim Wentworth has indicated that VillageMD is not a critical part of the company's future strategy.