As the Atlanta Business Chronicle reported Monday, WebMD Health Corp. announced job cuts Tuesday that will affect the Midtown office located on the top two floors of the 400 Colony Square office building.
The cuts are a part of WebMD's reduction in annualized operating expenditures of approximately $45 million.
The leading health information provider said in a release Tuesday that the “comprehensive program to streamline its operations, reduce costs and better focus its resources on increasing user engagement, improving customer satisfaction and driving innovation” would come at a cost. Approximately 250 positions, or roughly 14 percent of the company's employees, will be eliminated.
Two years ago, WebMD signed a long-term lease for 41K square feet at Colony Square. About 250 people are employed in Midtown and the ABC reported that the job loss could involve half of the Midtown office workforce.
The company said in its statement Tuesday that most of the job reductions would be effective at the end of this year. Also, more cost savings actions are to be implemented over the course of the first quarter of 2013 by the New York-based company that was founded in 1998 by Atlanta entrepreneur Jeff Arnold.
Despite site traffic that grows (reaching an average of 107.2 million unique users per month and 2.56 billion page views for the third quarter, increases of 22 percent and 24 percent, respectively, from the prior year period), the most recent quarterly results indicate WebMD’s revenue dropping to $117 million from $135 million at the same point a year before.
Tech Crunch breaks down more of the company’s Tuesday announcements in the face of Q3 net losses of $900K following a $14.2 million profit from a year ago at the same time.
WebMD Chief Executive Officer Cavan Redmond said in the release, "WebMD's value proposition for users continues to be very strong. Becoming leaner and more nimble will enable the Company to extend our leadership in this highly dynamic and increasingly demanding marketplace. In addition, anticipated changes in U.S. healthcare will provide meaningful new opportunities to link the needs of patients, consumers and healthcare professionals to enable them to navigate their care."
Earlier this year, "Why WebMD Is History: The Next Generation of Web-Based Medicine" was published at www.xconomy.com