Cerner to lay off 255 workers to cut costs

Cerner will lay off 255 employees as part of the EHR vendor's efforts to curb costs, Kansas City Business Journal reports.

Cerner notified the 255 affected workers Sept. 4. Employees affected work in various business units and come from all levels, including the executive level, Joe Mandacina, Cerner's head of corporate communications, told the publication.

The laid-off employees were offered a severance package, and their last day will be Nov. 5. The group represent less than 1 percent of the Kansas City, Kan.-based company's global workforce, which totals almost 30,000.

Cerner has been developing numerous initiatives to optimize company costs, Cerner CFO Marc Naughton said during a July earnings call, according to the report. The EHR vendor aims to cut more than $200 million in expenses by implementing sustainable savings. Part of this effort includes Cerner's recent $40 million buyout program, which provided payouts and benefits to some tenured employees who agreed to leave. 

"We're looking to identify organizational efficiencies as we implement our new operating model," a Cerner spokesperson said in an emailed statement, the publication reports. "Part of that strategy includes a realignment of resources focused on key growth areas across the company. We've onboarded nearly 3,000 associates this year and will continue to hire hundreds more throughout 2019, many of those in Kansas City. Impacted associates are eligible for those opportunities."

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