Cardinal Health reorganizes, announces layoffs

Cardinal Health of Dublin, OH, is consolidating its businesses into two primary operating and reporting segments to reduce costs and align resources.

Cardinal Health's pharmaceutical and medical product distribution centers and nuclear pharmacies will form a new Healthcare Supply Chain Services segment. Cardinal vice chairman George Barrett will head the division, which will have annual revenue of more than $80 billion and serve customers in North America.

Cardinal's infusion, medication dispensing, respiratory care, and infection prevention products will become part of a new Clinical and Medical Products segment under vice chairman David Schlotterbeck. The unit will have annual revenue of approximately $5 billion and serve global customers.

The restructuring will reduce Cardinal's workforce by approximately 600 positions. Approximately 160 of those 600 positions are vacant and will not be filled.

Cardinal also plans to take a restructuring charge of approximately $63 million related to the restructuring and layoffs. Most of the charge will go in the books in the current fiscal year, which began July 1.

Related Reading

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Cardinal to sell UltraSPECT packages, April 2, 2008

Cardinal Health, GE team for Myoview, March 19, 2008

Neoprobe, Cardinal Health ink distribution deal, November 28, 2007

Cardinal hires Philips executive, August 13, 2007

Copyright © 2008

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