WebMD cuts 14 percent of workforce amid ad slump

WebMD Health Corp., the national online health information provider with roots in Atlanta, is cutting jobs here and elsewhere to reduce costs, a move that follows a drop in advertising and sponsorship revenue.

The company said Tuesday that 62 of the 250 jobs being cut are in Atlanta. WebMD did not provide specifics on the Atlanta cuts but said the reductions overall will result from streamlining sales and delivery processes.

The staff reductions, which represent 14 percent of the workforce, are expected by the end of the year and will save the company about $45 million, it said.

Chief Executive Officer Cavan Redmond said the goal is to become “leaner and more nimble.”

“Anticipated changes in U.S. healthcare will provide meaningful new opportunities to link the needs of patients, consumers and healthcare professionals to enable them to navigate their care,” Redmond said in a statement. Efforts to reach WebMD for further comment were not successful Tuesday.

WebMD provides a wide range for health information services online, on mobile platforms and in publications. It has grown rapidly through multiple mergers and acquisitions, which also have led to hundreds of job cuts from time to time.

The company was founded in Atlanta in 1998 by entrepreneurs Jeff Arnold and James Clark, who envisioned using the Internet to link doctors, patients, hospitals, insurers, labs and pharmacies. It struck deals with Microsoft and other investors and marketing alliances with CVS and others.

A year after it was formed, the company merged with Healtheon, another online health information company, creating Healtheon/WebMD. The company later changed its name to WebMD and moved to the New York City area to be near a large number of customers and Wall Street.

Both Arnold, once named one of the richest people under 40 by Fortune magazine, and Clark left the company in 2000.

WebMD reported a modest third-quarter loss in November after a 15 percent drop in ad and sponsorship revenue from major drug companies. WebMD share rose more than 11 percent Tuesday, to $15.45.

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Christopher Seward

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