Healtheon/WebMD to Cut Jobs for Savings

FRAMINGHAM (08/18/2000) - Healtheon/WebMD Corp. this week joined the list of dot-coms that are laying off workers as a means of cutting expenses.

Steve Grant, Healtheon/WebMD's chief operating officer, said the job cuts are part of the company's effort to chop US$75 million from a projected $1 billion in expenses this year. The aim is to turn a profit in 2001, Grant said.

Healtheon/WebMD on Wednesday reported $55 million in losses, excluding noncash charges, for the second quarter of 2000. It posted $12.7 million in losses for the same period a year ago.

Grant declined to say how many jobs will be eliminated. Healtheon/WebMD, which connects doctors, patients and insurers online, currently has 2,210 employees in 25 offices nationwide.

The Atlanta-based company will be adding 3,300 employees with the acquisition of Medical Manager Corp. and its CareInsite Inc. subsidiary. This pending buyout is the latest for Healtheon/WebMD, which has bought 10 companies in 18 months.

The dot-com layoff list is growing. Just in the past week, furniture retailer closed down, laying off 275 employees and filing for bankruptcy. And delivery service cut 275 jobs and closed two Los Angeles facilities in an effort to improve its financial picture.

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