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WebMD to Cut 250 Jobs, Shares Soar

It is looking to streamline operations and cut expenses


webmd wbmd stockShares 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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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,

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