December 11, 2012
Health information website WebMD (NASDAQ: WBMD ) today announced a series of cost-cutting measures aimed at saving approximately $45 million in annualized operating expenditures.
The company will cut 250 positions, reducing its overall staff by 14%. Most layoffs will occur by the end of 2012, and additional cost-saving initiatives will be implemented in the first quarter of 2013.
"WebMD's value proposition for users continues to be very strong. Becoming leaner and more nimble will enable the Company to extend our leadership in this highly dynamic and increasingly demanding marketplace," said CEO Cavan Redmond in a statement.
The press release states that WedMD will focus on streamlining its sales and delivery process by prioritizing the company's resources and investments.
The company will record a pre-tax restructuring charge of around $7 million in the fourth quarter of 2012. Last year, WebMD made $559 million in sales and $75 million in net profit.