WebMD to Cut 250 Jobs, Shares Soar

by Christopher Freeburn | December 11, 2012 11:06 am

webmd logo WebMD to Cut 250 Jobs, Shares Soar[1]Shares of WebMD (NASDAQ:WBMD[2]) surged more than 9% in Tuesday morning trading after the company announced plans to eliminate 250 jobs in a bid to trim expenses[3].

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.

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[4]) executive Cavan Redmond as its new CEO[5], replacing Wayne Gattinella, who left in January.

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

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/09/webmd-logo.gif
  2. WBMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=WBMD
  3. in a bid to trim expenses: http://www.reuters.com/article/2012/12/11/net-us-webmd-jobcuts-idUSBRE8BA0HR20121211
  4. PFE: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFE
  5. as its new CEO: http://investorplace.com/2012/06/webmd-names-cavan-redmond-as-new-ceo/

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