WebMD to eliminate 250 jobs in cost-cutting pushDecember 11, 2012 @ 7:25 am
NEW YORK (AP) - Health website operator WebMD Health Corp. plans to cut about 14 percent of its workforce as part of a push to reduce costs.
The New York company said Tuesday the cuts amount to about 250 positions, and it expects to reduce annual operating expenses by about $45 million. Most of the job cuts will take place by the end of the year, while some of the other cost-cutting measures will extend into the first three months of 2013.
WebMD said it will record a pre-tax restructuring charge of between $6 million and $8 million in the fourth quarter, mainly for severance pay and other costs related to "streamlining" its operations.
The company provides health and benefits information to consumers, employers, doctors and health plans. Its websites include WebMD Health, MedicineNet, RxList and theheart.org.
WebMD has struggled to maintain advertising revenue this year as drug companies cut back on spending. Competition from social networking sites and ad networks also has increased.
Shares of WebMD slipped 22 cents to $13.63 in premarket trading. The stock closed Monday at $13.85, down 63 percent since the start of the year.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Twelve Seattle police officers will begin using new body-worn cameras next week
Week in Photos
Penguins, cheetahs and Santa make it in this week's photos
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.