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Advanced Health cuts jobs
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November 12, 1998: 1:08 p.m. ET
Move affects 240 workers, 60 percent of staff ; to refocus on e-commerce
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TARRYTOWN, N.Y. (CNNfn) - Advanced Health Corp. said it will lay off 240 workers, or 60 percent of its staff, in a restructuring that will focus on e-commerce and other Internet services.
The company said it will take a fourth-quarter charge of $2.5 million and close five of its nine offices. It expects the restructuring to cut annual costs by $15 million but doesn't expect to turn a profit in 1999.
Advanced Health said it will cut jobs as it reduces the size and growth objectives of its outsourcing services business. It sees the highest growth potential in its information technology business and aims to become a leading provider of Internet-based health-care e-commerce to doctors and health-care organizations.
"We already have a good presence in this market," said Arthur Dague, head of investor relations. "The business we're focusing on is a high-growth and high-margin business."
Dague said the company had about 400 employees as of June 30 and will have about 160 after the layoffs, which it expects to complete by the beginning of next year.
Advanced Health said it expects to narrow its baseline loss for the fourth quarter. The company reported 1997 fourth-quarter income of $3.58 million, or 34 cents per diluted share.
The company posted a third-quarter loss of $16 million, or $1.59 per diluted share, compared with a profit of $1.77 million, or 24 cents per diluted share, a year earlier.
Advanced shares (ADVH) were down 7/16 at 1-11/16 in late morning trading. 
-- from staff and wire reports.
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Advanced Health Corp.
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