Walgreens continues pay hike freeze for senior U.S. executives

"We have been doing this since August ... In November our senior leaders did not get an increase," Walgreens spokesman Michael Polzin said at an analysts meeting in New York.

The cost cutting plan was announced in August 2014, and earlier this month, Walgreens said it would increase its projected cuts to $1.5 billion by the end of fiscal 2017.

As a part of that effort, Walgreens would close 200 U.S. stores, reorganize corporate and field operations and streamline IT operations. Walgreens is dealing with higher costs for generic medicines and reimbursement rates from drug plans that are chipping away at profit.

(Reporting by Nandita Bose in Chicago; Editing by Grant McCool)