HEALTHEON/WEBMD: Company Issuing Pink Slips To Cut Costs
Attempting to cut $75 million from its $1 billion in expenses this year, Healtheon/WebMD has begun laying off some of its employees in what the Internet company COO Steve Grant calls only the first among "waves of layoffs," the AP/New York Times reports. Healtheon/WebMD, the site that serves to connect doctors, patients, insurers and labs online, remains financially strong with $1 billion in the bank, Grant says, but it still needs to turn a profit and hopes to do so by the end of next year. The company has watched its stock price plunge more than 75% this year and lost $128.6 million on its revenue of $167 million between January and June this year. Healtheon/WebMD currently employs 2,210 workers in 25 offices across the country, but another 3,300 will be added with its pending purchase of Medical Manager Corp. and its CareInside subsidiary (8/18).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.