Tuesday, December 11, 2012

WebMD to cut 250 jobs to reduce expenses

(Reuters) - Health information website WebMD Health Corp said it will cut around 250 jobs, or 14 percent of its workforce, to reduce costs.

The company said it would take a charge of about $6 million to $8 million in the fourth quarter, primarily for severance and other restructuring-related costs.

The company also said 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.

WebMD is a popular and long-trusted website for checking health and disease related information, but the company has lost its sheen in recent times as it struggled to convert its growing user base into a steady revenue stream.

The company's shares, which have lost nearly 40 percent of their value over the past six months, closed at $13.85 on Monday on the Nasdaq.

(Reporting by Esha Dey in Bangalore; Editing by Roshni Menon)



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