- The Washington Times - Tuesday, March 31, 2009

NEW YORK (AP) - Cardinal Health Inc. said Tuesday its clinical and medical products unit will eliminate 1,300 jobs, with most of the cuts made over the next six months, as hospitals cut back on equipment purchases.

Cardinal plans to spin the unit off later this year under the name CareFusion Corp. Cardinal said the business will lay off 800 people and eliminate 500 more jobs through attrition. The region most affected by the job cuts is southern California, with 200 jobs in San Diego being eliminated.

Dublin, Ohio-based Cardinal Health Inc. said it will take a $33 million restructuring charge in fiscal 2009, which ends in June, and a $24 million charge in fiscal 2010. It said the cuts will save it $110 million to $130 million annually within two years.

The company also said it will reduce discretionary spending and control costs in response to weaker demand and the troubled global economy. CareFusion is expected to be spun off into a separate publicly traded company over the summer, and Cardinal Health said Tuesday’s job cuts will not change its plans.

Cardinal employed 47,600 people as of last June. Its stock rose 6 cents to close at $31.48 Tuesday.



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