IMS Health expects to cut about 10% of its workforce worldwide by year-end as part of an effort to improve operations, the company announced.
The Norwalk, Conn.-based healthcare data-miner said it is reorganizing various areas of its business, including consulting practices, some production operations and support services such as marketing, finance and administration. IMS Health expects the reduction to improve its profitability, especially in Europe.
The company, with more than 7,600 employees in more than 100 countries currently, estimates a total pretax charge of $86 million to $90 million for the fourth quarter of 2007 and forecasts $55 million to $60 million in annual savings beginning in 2009 from the reduction. More details will be provided during a Jan. 31 shareholder conference call.
IMS Health, which has been involved in privacy lawsuits in a number of states, was selling at $22.05, down 0.27% this morning, on the New York Stock Exchange.