Dec 11 Health information website WebMD Health
Corp said it will cut around 250 jobs, or 14 percent of
its workforce, to reduce costs.
The company, which had about 1700 employees according to
Thomson Reuters data, said it would take a charge of about $6
million to $8 million in the fourth quarter, primarily on
severance and other restructuring-related costs.
WebMD, which is a popular and long-trusted destination for
checking health and disease related information, has lost its
sheen for investors in recent times as it struggled to convert
its growing user base into a steady revenue stream.
The company named a former Pfizer Inc executive
Cavan Redmond as CEO earlier this year, entrusting the industry
veteran with the task of reviving the website's flagging
Its previous CEO, Wayne Gattinella, resigned after the
company took itself off the auction block in January.
WebMD also said on Tuesday that it plans to streamline its
operations and focus resources on increasing user engagement,
customer satisfaction and innovation, and expects these efforts
to reduce annualized operating expenses by about $45 million.
While most of the job cuts will be effective at the end of
the year, other cost saving actions will be implemented in the
first quarter of 2013, the company said in a statement.
The company reported a third-quarter loss in November,
compared with a profit in the year-ago quarter, and said revenue
fell 13 percent.
WebMD's shares, which have lost nearly 40 percent of their
value over the past six months, were down about 2 percent in
premarket trade. They closed at $13.85 on Monday on the Nasdaq.