McKesson cutting workforce by 4%

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EHR vendor McKesson is cutting its U.S. workforce by almost four percent or about 1,600 jobs, according to Bloomberg.

An emailed statement to Bloomberg said, "reductions to our workforce would be necessary to align our cost structure with our business needs." The company began notifying workers of layoffs in mid-March.

McKesson is looking to cut costs after its contract with Optum ran out and because of changes in a contract with Omnicare, according to the report. Slowed growth on generic drug prices is could be impacting the company's operating profit.

McKesson shares have dropped 32 percent in the past year, according to the report.