Cerner to cut 100 positions

Cerner will eliminate 100 jobs as part of its third round of layoffs since September 2019, The Kansas City Star reports.

As part of its ongoing effort to curb costs and increase operating margins, the Kansas City-based EHR vendor issued two rounds of layoffs in September and November, affecting 386 employees collectively.

"As mentioned in previous earnings calls, Cerner continues to identify organizational efficiencies as we implement our new operating model," a company spokesperson said in a June 23 emailed statement to Becker's Hospital Review. "Part of that strategy includes a realignment of resources focused on key growth areas across the company."

Cerner CEO Brent Shafer in January 2019 announced the company's new operating model, pivoting Cerner's focus from EHRs to a platform organization. The company has since transformed its business strategy to expand its focus on client experience as EHRs move out of the era of adoption to system optimization.

The most recent round of layoffs at the global company will affect 50 employees in the Kansas City area across multiple departments, according to the report. However, Cerner plans to hire 5,000 new employees by the end of the year, and workers who were notified on June 23 of layoffs are eligible to apply for the upcoming positions, the spokesperson said.

For the first quarter of 2020, Cerner posted $1.41 billion in revenue, up 2 percent from the year prior. The revenue was slightly below the company's expectations due to negative impacts of the COVID-19 pandemic, company executives said during an April 28 earnings call.

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