Athenahealth laid off less than 4% of its employees Tuesday as part of its restructuring.
The layoffs come two months after Veritas Capital and Elliott Management Corp.'s Evergreen Coast Capital completed their $5.7 billion purchase of Athenahealth in February.
Athenahealth did not comment on departments or locations affected in the layoffs.
Veritas Capital and Evergreen Coast Capital plan to combine Athenahealth with Virence Health, a value-based care business Veritas Capital acquired from GE Healthcare in 2018. The combined company will retain the Athenahealth name, brand and Watertown, Mass., headquarters.
The company is "reorganizing" as it merges the Athenahealth and Virence teams, according to a spokesperson.
"As with any large transaction of this size, there are overlaps in functional areas," the spokesperson said. "While we've had to make some difficult decisions, we have implemented a new organizational model that enables faster decisionmaking, decreases bureaucracy and consolidates capabilities."
In February, Athenahealth announced that Virence CEO Bob Segert would lead the combined company, including an executive leadership team composed of executives from both groups. The new company has more than $1.7 billion in revenue and more than 160,000 clients, 120,000 of whom come from Athenahealth.
