WebMD to Eliminate 250 Jobs in Cost-Cutting Push
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.