Cerner eliminates 500 jobs from labor force
Cerner said this week that it had reduced its global workforce by 500 positions.
According to a statement from the electronic health records vendor, the move came as part of its “enterprise-wide transformation work.”
Still, the company told the Associated Press that it anticipated hiring 2,600 people around the world this year.
“Cerner remains committed to positioning the company for future success. We are focused on delivering a higher order of benefits for clients, associates shareholders,” said the company in a statement provided to Healthcare IT News.
WHY IT MATTERS
In total, Cerner employs roughly 26,000 people worldwide, about half of whom reside in Kansas City.
The company did not specify the location of the to-be-eliminated positions, but told the AP in a statement that it will continue to be the largest private employer in the area.
The announcement follows reports of Cerner’s new hybrid model, which will allow the majority of workers to choose between working in the office or from home this fall.
“Cerner’s future [at work] is being intentionally designed to further attract, engage retain a competitive global workforce capable of executing on the company’s mission helping us transform the future of healthcare,” said Tracy Platt, chief human resources officer for Cerner, in a post published to the company’s website.
THE LARGER TREND
Cerner has been signaling forthcoming changes over the past few months, announcing in May that it would begin looking for a new chief executive officer to replace current CEO Brent Shafer.
That announcement came alongside the company’s first-quarter earnings report, in which it beat earnings projections but fell short on estimated revenue.
Meanwhile, the organization’s ongoing electronic health record modernization project with the U.S. Department of Veterans Affairs has faced scrutiny. The project’s initial rollout at the Mann-Grandstaff VA Medical Center in Spokane, Washington, provoked calls for a strategic review after complaints of prescription errors, unsatisfactory patient portal functionality provider stress.
Agency officials said they would not move forward with a second go-live until that review, announced in mid-April, was completed.
ON THE RECORD
“Our recent actions demonstrate our continued enterprise-wide transformation work – ensuring we more efficiently deliver value to clients set the company on a path to longterm, profitable growth,” said Cerner officials in a statement.