After losing $70 million in the second quarter of 2017, NantHealth is now laying off about a third of its employees.
Some of the 300 employees will go to Allscripts, which just bought NantHealth's provider- and patient-engagement business in an all-stock purchase. Others will be let go as part of NantHealth's "interal consolidation," according to NantHealth's earnings release.
The company expects the workforce reduction and "other steps the company has taken" will save more than $70 million annually.
The company has been struggling financially, with a net loss of $70 million in the second quarter of 2017 after hitting $184 million in losses in 2016. The company's founder, Patrick Soon-Shiong, has also been mired in controversy as of late, with reports that he's used charitable donations to help the company. Soon-Shiong has denied the claims, and NantHealth's website now has a disclaimer warning about "false reporting."
