Health and Science

McKesson cuts 1,600 jobs to trim costs: Bloomberg

Prescription drug distributor McKesson Corp. headquarters is seen in San Francisco.

U.S. drug distributor McKesson is cutting 1,600 jobs, or about 4 percent of its U.S. workforce, to slash costs after the company lost some key customers, Bloomberg reported on Wednesday.

McKesson began a strategic review in January and decided that "reductions to our workforce would be necessary to align our cost structure with our business needs," Bloomberg reported, citing an e-mailed statement from the company.

The company started informing workers about the lay-offs in mid-March, Bloomberg said.

McKesson, which distributes drugs to retailers such as CVS Health, said in January its fiscal 2017 earnings would likely be hit by weak generic drug pricing.

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It has focused on inking deals to spur growth. McKesson said it would buy Canadian drugstore chain Rexall Health for C$3 billion ($2.23 billion) in March and said it was buying two privately held cancer care service providers for a total of $1.2 billion in February.

McKesson was not immediately available for comment.