Carefusion (NYSE: CFN), which boasts almost 15,000 employees in 20 countries, has announced that it's planning to cut 700 jobs, or 5 percent of its workforce. The cuts will hit management and support staff. CareFusion, which was spun off from Cardinal Health last year, says the cuts could save up to $95 million next year and as much as $120 million in 2012. The company will incur a one-time charge of $40 million to $50 million in 2011 related to the restructuring.
"During fiscal 2010, we evaluated our cost structure and the strategic fit of certain businesses and are now taking the necessary steps to right size our company," explains CareFusion CEO David Schlotterbeck. "Our goal is to improve our competitive position, accelerate our previously announced efforts to improve our operating margins and enhance our focus on the core opportunities we have for growth."
CareFusion's second quarter income fell to $52 million, or 23 cents per share, compared with $96 million, or 44 cents per share, in the second quarter of 2009. Revenue was up 19 percent to $1.04 billion, from $867 million last year. The company says its expecting revenue growth of mid-single digits on a reported basis over fiscal 2010 results, and adjusted diluted earnings per share of $1.58 to $1.68, an 11 to 18 percent increase.
- check out CareFusion's release
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