Cardinal Health is consolidating its businesses into two primary operating and reporting segments and reducing its workforce by approximately 600 positions to reduce costs and align resources with the needs of each segment.
Cardinal said its network of pharmaceutical and medical product distribution centers and nuclear pharmacies will form the healthcare supply chain services segment, led by Vice Chairman George S. Barrett; while products for infusion, medication dispensing, respiratory care and infection prevention will be grouped in the clinical and medical products segment under Vice Chairman David L. Schlotterbeck.
The company said the segments will be connected by a lean corporate organization and Cardinal’s hospital sales force.
With the changes, the Dublin, Ohio-based Cardinal will incur a restructuring charge of approximately $63 million, the substantial majority of which the company expects to recognize in the current fiscal year, which began July 1.
Of those 600 positions, about 160 are currently open and will not be filled. Employees affected will be offered severance benefits, according to the company.
The healthcare supply chain services segment consolidates pharmaceuticals and medical products from manufacturers into site-specific deliveries to retail pharmacies, hospitals, physician offices, surgery centers and alternate care facilities. The clinical and medical products segment manufactures medication infusion and dispensing products, respiratory equipment, surgical instruments and technologies and services that help hospitals prevent medication errors, reduce hospital-acquired infections and manage medications and supplies, according to the company.