This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Dec. 11, 2012 /PRNewswire/ -- WebMD Health Corp. (NASDAQ:WBMD), the leading source of health information, announced today a comprehensive program to streamline its operations, reduce costs and better focus its resources on increasing user engagement, improving customer satisfaction and driving innovation. WebMD expects these actions to result in a reduction in annualized operating expenditures of approximately
$45 million, including the impact of a workforce reduction of approximately 250 positions, or roughly 14% of the Company's employees. While most of the workforce reductions will be effective at the end of this year, other cost savings actions will be implemented over the course of the first quarter of 2013. WebMD will continue to provide patients, consumers and physicians with an unmatched breadth of trusted content and valuable tools across its market leading multi-screen platform.
Cavan Redmond, Chief Executive Officer of WebMD, said, "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. In addition, anticipated changes in U.S. healthcare will provide meaningful new opportunities to link the needs of patients, consumers and healthcare professionals to enable them to navigate their care. We are moving swiftly to implement these operational changes and new market initiatives."
As part of this program, WebMD is streamlining its sales and delivery processes to enable better collaboration with our sponsor and agency clients. Across the entire company, there will be a sharper focus on prioritizing resources and investment to key areas of future growth.
The Company anticipates it will record a pre-tax restructuring charge of approximately
$6 million to $8 million in the fourth quarter of 2012 primarily for severance and other costs related to this cost reduction initiative. This charge was not contemplated in the Company's previously issued 2012 financial guidance.
About WebMD WebMD Health Corp. (NASDAQ: WBMD) is the leading provider of health information services, serving consumers, physicians, healthcare professionals, employers, and health plans through our public and private online portals, mobile platforms and health-focused publications.
The WebMD Health Network includes WebMD Health, Medscape, MedicineNet, eMedicineHealth, RxList, theheart.org, Medscape Education and other owned WebMD sites.