Cardinal Health Cutting 600 Jobs

Dublin, OH (AHN) - Cardinal Health announced Tuesday they will cut 600 jobs, roughly 1.5 percent of their global workforce.

The move comes as the drug wholesaler looks to streamline its business in an effort to reduce costs. Part of the plan is to group its distribution centers and nuclear pharmacies together and put medical products in a separate group.

The changes would save money and make the company more efficient, said Chairman and Chief Executive R. Kerry Clark.

Cardinal plans to take a $63 million restructuring charge in fiscal 2009 for the move.

"A new restructuring plan signals that the issues that have bedeviled the company in the past are likely to persist," Morgan Stanley analyst David Veal wrote in a research note, according to Reuters. "Even so, we are encouraged by an apparent willingness to consider ever bolder steps to unlock value that could lead us to a more positive stance toward the shares."

As part of the cut, Cardinal will not fill 160 positions that are currently open.

Shares of Cardinal are trading 1.2 percent higher at $51.25 on Tuesday.