Cerner Corp. laid off roughly 130 employees on Tuesday as part of an ongoing effort to cut costs and boost operating margins, the company has confirmed.
That's on top of 255 employees that Cerner cut from its workforce in September.
A spokesperson for Cerner largely offered the same statement the company provided in September.
"As mentioned in our earnings call earlier this year, we're looking to identify organizational efficiencies as we implement our new operating model," he said. "Part of that strategy includes a realignment of resources focused on key growth areas across the company."
He added that Cerner has onboarded more than 4,000 employees this year, and plans to hire "hundreds more throughout 2019."
Cerner in April revealed plans to implement a new operating model to improve the company's efficiency and profitability, including 165 cost-cutting, portfolio management and business simplification initiatives. The operating model was part of an agreement with Starboard Value, an activist investment fund that owns roughly 1% of the company's outstanding stock.
The agreement with Starboard Value also involved a "board refreshment," changing more than half of the Cerner's board since 2017.
Leadership has been in flux at the electronic health record giant as well. Michael Nill, who has worked at Cerner for 23 years, plans to step down from his post as executive vice president and chief operating officer in January. Joanne Burns, chief strategy officer at Cerner, also plans to leave the company in early 2020.
Jeff Townsend, the company's executive vice president and chief of innovation, retired this month after more than 30 years with Cerner.
Cerner's goal for the operating model is to improve its adjusted operating margin, targeting 20% for the fourth quarter of 2019. In 2020, the company plans to increase its adjusted operating margin to 22.5%.
The company is on track to surpass that goal for the fourth quarter, Cerner Chief Financial Officer Marc Naughton said during a third-quarter earnings call with investment analysts in October. Cerner's adjusted operating margin was 18.1% in the third quarter, down from 19.2% the year prior.
Cerner posted net income of $81.9 million for the third quarter, down 51.6% from $169.4 million in the year-ago period. The company's third-quarter revenue totaled $1.43 billion, up 6.7% from one year prior.