IMS Health restructuring after dismal Q2IMS Health announced a streamlining of business operations in the wake of second quarter losses.
The Associated Press and other outlets are reporting that as many as 850 employees will lose their jobs – an 11% reduction of the total workforce. IMS Health could not be immediately reached for comment.
In a statement on the company's website, David Carlucci, chairman and CEO at IMS, said the business remains solid, but will require some tweaking. “While we planned for lower growth coming into 2009, the accelerating healthcare market dynamics compounded by an economic downturn have caused our customers to significantly rein in their spending. As a result, we are taking decisive actions to lower our cost structure and better position the business for a return to growth.” Second quarter revenues were down 13%.
The restructuring plan will “reduce capacity and align the size of sales and management consulting teams in areas of lower demand,” according to the statement. That will include 170 jobs in the US, according to reports.