WebMD to Cut 250 Jobs, Shares Soar

It is looking to streamline operations and cut expenses

   

WebMD to Cut 250 Jobs, Shares Soar

webmd logo WebMD to Cut 250 Jobs, Shares SoarShares of WebMD (NASDAQ:WBMD) surged more than 9% in Tuesday morning trading after the company announced plans to eliminate 250 jobs in a bid to trim expenses.

The struggling online health information provider will record fourth-quarter charges of between $6 million and $8 million mostly relating to the layoffs, which affect 14% of its 1,700 employees, Reuters noted.

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New Obamacare Fee Adds $63/Person to Healthcare Costs

In addition to the job cuts, WebMD will invest in enhancing customer satisfaction. It will also look to streamline its business. It hopes to save $45 million a year through cost-cutting plans that take effect early next year.

Last month, WebMD said that it had swung to a third-quarter loss on revenues that fell 13% from last year.

In June, the company named former Pfizer (NYSE:PFE) executive Cavan Redmond as its new CEO, replacing Wayne Gattinella, who left in January.

Activist investor Carl Icahn had acquired a 13.12% stake in WebMD as of April.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/webmd-to-cut-250-jobs-shares-soar/.

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