Cardinal Health restructuring to cost 180 jobs, including 20 in Dublin

Cardinal Health is restructuring a medical supply unit, resulting in some job losses.

Cardinal Health Inc. said Wednesday it plans to cut about 180 jobs, including 20 at its Dublin headquarters, and take a pre-tax charge of $79 million as it restructures a unit in its medical supply division.

The moves are meant to anticipate customer demand for greater efficiency and lower cost, spokeswoman Debbie Mitchell said in an email to Columbus Business First.

The pharmaceutical and supply distributor outlined the costs in a filing with the Securities and Exchange Commission, saying the charges will come from employee separations and an expected loss on selling real estate at its campus in Waukegan, Ill.

The company is closing the Chicago-area facility that assembles surgical kits, which are sterilized packages with instruments used in specific surgical procedures, and moving production to the two other facilities that make the kits in Fort Mill, S.C., and Juarez, Mexico. The Waukegan facility employs about 650, but the net job loss to Cardinal will be about 100 as positions transfer to the other two sites, Mitchell said.

Cardinal moved 700 jobs from Waukegan to Dublin five years ago. Mitchell said the company will keep two buildings on its McGaw Park campus there, while selling the rest.

The other reduction of 80 jobs comes from consolidating nationwide medical supply sales and marketing teams that serve hospitals.

Separately, Cardinal is planning to sell a business in El Paso, Texas, that sterilizes instruments. Mitchell said the plan is to lower Cardinal?s costs by having another operator take on that business and its employees and sell the service back to Cardinal.

The company expects the restructuring to be complete by the end of the year ending June 30, 2014, and for savings to start accruing before then.

Carrie Ghose covers health care and medicine, higher education, technology and business services for Business First.

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