WebMD Health Corp, the health and medical news information site, just announced its plans to cut around 250 jobs in an effort to reduce costs. The lost jobs equal 14 percent of its workforce. According to Reuters’ data, the company had about 1700 employees.
The company also said that it plans to restructure its operations and focus its resources on the following: increasing user engagement, customer satisfaction and innovation. WebMD projects its efforts will reduce annualized operating expenses by an estimated $45 million.
Most of the job cuts will take place at the end of the year, while the other cost saving measures will be implemented in the first quarter of 2013, according to WebMD. The health site reported it would take a charge of around $6 million to $8 million in the fourth quarter, primarily on severance and other restructuring-related costs.
According to a Reuters’ article, the popular health and medical news website has “lost its sheen for investors in recent times as it struggled to convert its growing user base into a steady revenue stream.”
WebMD reported a third-quarter loss in November, with revenue falling 13 percent. The company’s shares have lost nearly 40 percent of their value over the past six months and were down about 2 percent in premarket trade, the article reported.