Drug distributor Cardinal Health plans to cut 4,200 jobs from its global workforce of 58,000 during the first phase of a previously announced three-year restructuring aimed at improving annual operating earnings by $500 million.
Cardinal will close 25 facilities worldwide as part of the restructuring.
The company also announced that its board authorized repurchasing up to $500 million in stock.
The cost of the first phase of restructuring is estimated at up to $350 million. Cost savings and profit improvements are expected to add $125 million to operating earnings in fiscal 2005.
The second phase of restructuring is expected to add up to $350 million in operating earnings. Officials said they have not yet calculated the associated costs.
Cardinal projected that earnings per share for the first half of fiscal 2005 will decline approximately 15%.
