WebMD to Cut 250 Jobs, Shares Soar

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

[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.

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