MedicaLogic/Medscape, Inc. (Nasdaq: MDLI) was up 5/16 early Friday at 7 15/16 after the company — formed by the recent merger of MedicaLogic and Medscape, Inc. — said it would lay off 10 percent of its workers in a cost-cutting plan.
The plan, the company said, will reduce operating expenses by more than $20 million a year. It intends to focus on its “core business activities” of online medical-records services, information sites Medscape.com and CBS.Healthwatch.com, and e-commerce activities like electronic prescription services.
“The investment community clearly is looking to e-healthcare companies for decisive action, and proof of their ability to deliver results and a path to profitability,” said Chairman Mark Leavitt. The “full cost benefits” of the new plan will be evident by the fourth quarter of this year, he said.