McKesson announces layoffs, to shed 1,600 U.S. employees
- This week, McKesson announced it will let go about 1,600 employees, or about 4% of its U.S. workforce, Bloomberg reports.
- After the announcement, shares fell 3.5% last Thursday. The overall stock has fallen 37% since last May, San Francisco Business Times reports.
- Last March, the company employed about 70,400 FTEs, Fortune reports.
The Business Times notes declining generic drug prices coupled with industry consolidation heavily contributed to the restructuring decision. The cuts are expected to save about $170 million to $190 million, MarketWatch reports. Yet, the restructuring move will likely cost the company $300 million to $330 million.
The company recently lost it's Optum pharmacy benefits management account. The Business Times also notes its contract with Rite Aid is "expected to end when Walgreens Boots Alliance completes its acquisition of Rite Aid."
Yet, the company is also making moves on the acquisition front. In February, it announced it will be scooping up Vantage Oncology and Biologics for a grand total of $1.2 billion and it picked up Rexall this month for $2.2 billion, according to Modern Healthcare.
- Bloomberg McKesson Falls After Saying It Will Cut 1,600 Jobs in U.S.
- San Francisco Business Times What do McKesson's 1,600 layoffs mean?
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