CoverMyMeds, the Columbus-based well being expertise agency, introduced to its employees this morning that it’s shedding 815 staff and leasing out house in its new Franklinton headquarters.
The announcement is the newest in a string of main job cutbacks from central Ohio tech corporations together with Olive, Decrease.com, Root and Upstart.
Kevin Kettler, president of CoverMyMeds, a division of the healthcare firm McKesson, introduced the layoffs in an early morning e mail to employees.
“We’re saddened to share that right now we are going to get rid of about 815 CoverMyMeds roles, with the vast majority of these group members leaving the enterprise between now and April 14,” Kettler wrote.
“Over the previous few months, collectively, we took necessary steps to convey our bills extra consistent with our income development and to optimize our investments. … It’s develop into clear, nevertheless, by way of enterprise planning that additional motion is required for CoverMyMeds to proceed on a path of long-term sustainable development. Right now, which means making some troublesome bulletins associated to our folks and our workplaces.”
Kettler stated laid-off staff might be eligible for severance pay, annual bonuses, profession assist and healthcare for an unspecified time frame.
Arizona workplace to be closed
Kettler’s e mail didn’t specify the place the 815 jobs can be minimize, however stated the corporate’s Scottsdale, Arizona, workplace, which housed CoverMyMeds’ affected person assist heart, can be closed. The middle’s capabilities can be moved to Columbus. Arizona staff who’re nonetheless employed have the choice to maneuver to Columbus.
As well as, Kettler stated the corporate would cut back the dimensions of its Atlanta workplace and hire out some house in its two-building Franklinton headquarters, which the corporate opened lower than two years in the past at a value of $240 million.
“Columbus will proceed to be an necessary location in our footprint,” Kettler wrote. “We intend to make use of workspace in each buildings 1 and a pair of, whereas additionally sub-leasing a few of the unused house on campus to different organizations starting this fiscal 12 months.”
Angela Tavrell, director of exterior communications for CoverMyMeds, reiterated that “Columbus stays an necessary location for CoverMyMeds, and it’s the place we’ll strategically rent and develop the enterprise.”
CoverMyMeds “continues to be a development phase for McKesson and any modifications that we make are reflective of our ongoing funding in our development goals.” Tavrell stated. “Our dedication is to do every little thing we are able to to assist our teammates by way of this transition with care and respect.”
Layoffs in a ‘rising enterprise’
Based in 2008, CoverMyMeds developed a platform that transmits prior authorization requests between pharmacies, medical suppliers and well being plans. The corporate was acquired in 2017 by McKesson Corp. for greater than $1 billion.
For the newest quarter, which ended Dec. 31, CoverMyMeds accounted for $1.1 billion of McKesson’s $70.5 billion in income, and $136 million of McKesson’s $1.45 billion in revenue. It’s the most worthwhile of McKesson’s 4 divisions, with revenue accounting for 12.1% of income.
“In gentle of right now’s bulletins, it’s possible you’ll understandably be asking why these selections are essential in a rising enterprise,” Kettler instructed staff. “In abstract, we’re aligning staffing with timing of buyer contracts, managing our portfolio and key investments in a extra disciplined method, and integrating additional to function sustainably as one CoverMyMeds. We, as a management group, intend to share extra about these elements within the coming days.”