CareFusion Corp., only a year removed from its launch as a public company, announced layoffs of more than 700 workers that are expected to generate cost savings of more than $100 million as part of a company-wide restructuring aimed at shoring up operating margins.
CareFusion to lay off more than 700 workers
CareFusion, based in San Diego, spun off from Cardinal Health last year to focus on the drug-delivery equipment and infusion pumps, which are among the most widely used and recognized medical devices in hospitals.
Although company officials said CareFusion as a whole performed better than its own expectations during its first year, workforce reductions were being implemented to reduce layers of management and units that were diluting operating performance.
The announcement came as part of CareFusion's first annual earnings report. The company reported $194 million in net income on $3.9 billion in revenue for fiscal 2010, which ended June 30. The company projected single-digit percentage revenue growth in fiscal 2011.
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