San Francisco-based McKesson is eliminating nearly four percent of its U.S. workforce, which equates to nearly 1,600 jobs, in an effort to reign in costs, reports Bloomberg.
In an emailed statement to Bloomberg, McKesson said, "reductions to our workforce would be necessary to align our cost structure with our business needs." The company began notifying workers of layoffs in mid-March.
Bloomberg reports McKesson is seeking ways to cut costs after its contract with Optum expired and changes in a contract with Omnicare took place. Additionally, the report suggests slowed growth on generic drug prices is also playing a role in the company's operating profit.
McKesson shares dropped 32 percent in the past year, according to the report.
More articles on McKesson:
McKesson launches InterQual Connect for medical review, authorization
McKesson's new Texas location to generate 975 jobs, $157M capital investment
SaaS solution company MedPower partners with McKesson