The drug wholesaler said it expects to take a charge of $300 million to $330 million in severance and employee-related costs, the vast majority of which will come in the fourth quarter that ends in March, with the remainder coming before the end of 2019.
McKesson said the job cuts and related cost-reduction plans will save $170 million to $190 million before taxes next year and will save $70 million to $90 million the following year.
See, now isn't being out of work for the summer worth it? :-]
Makes no sense. They aren't paying us in a lump sum. They are going to make the regular paycheck cycles until severance is exhausted. Some people have 40+ weeks coming to them so how are they "realizing" cost savings this quarter?? Lies
Relocating the corporate office, obviously. Tax savings. Lower wages in TX vs CA. Plus relocating affords McK the chance to "downsize" and let high paid staff go.
So everyone is talking about the 1,600 layoffs but no one is talking about the announced new headquarters in Irving where they are hiring 1,000 new employees? Smells funny!
You need to be using the $170 - $190 million saving for FY17 which is in line with the 1,600 employees.
I agree. The math doesn't seem to add up. Maybe they are including benefit cost (I.e COBRA) in the $330M? Or.... The 1600 number is for this week only with next week adding more to that.
$330M yields approximately 3,000 headcount reduction (at $100K/head-cut rate)...