Tenet sees stock sink after increasing job cut target

Shares of Dallas-based Tenet Healthcare dipped 3.9 percent in afternoon trading on Monday after the company increased its workforce reduction target to 2,000 employees, according to MarketWatch.

In a presentation to investors at the J.P. Morgan Healthcare Conference in San Francisco Monday, Tenet Executive Chairman and CEO Ron Rittenmeyer said the company would cut 2,000 jobs as part of a $250 million cost reduction initiative. That was an increase from October, when Tenet said it would eliminate 1,300 jobs under the cost-cutting plan.

Separately, on Monday, Tenet lowered its 2018 adjusted earnings per share guidance range due to tax code changes.

"While [earnings per share] will be lower due to the limitation on interest expense deductibility, this does not impact free cash flow, and over the next two to three years, we expect these changes will positively affect EPS due to the lower tax rate," Mr. Rittenmeyer said in a statement.

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