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McKesson cuts 1,600 jobs to trim costs: Bloomberg

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

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.