Business

Charlotte-based Premier Inc. to lay off 3 percent of its workforce

Susan DeVore, president and CEO, Premier, Inc. stands in front of the company’s corporate headquarters in Ballantyne in a 2013 file photo.
Susan DeVore, president and CEO, Premier, Inc. stands in front of the company’s corporate headquarters in Ballantyne in a 2013 file photo.

As part of a cost-cutting measure, Charlotte-based health care solutions company Premier Inc. is laying off 75 workers, who make up about 3 percent of the company’s overall workforce.

The move is part of the company’s “ongoing integration synergies and efforts to realign resources for future growth areas,” Premier said in a securities filing last week.

Most of the affected employees are from the company’s “performance services segment,” Premier said. The company informed employees last Friday of the layoffs. The cuts will be completed by the end of February.

The “personnel adjustments” will result in a pre-tax restructuring charge of $5.2 million, which mainly includes severance and transition assistance.

CEO Susan DeVore said in a statement that the layoffs will result in a pre-tax cost savings of approximately $13 million to $14 million annually.

The layoffs came on the same day that Premier reported a second-quarter loss of $231 million due to a one-time re-measurement of deferred taxes resulting from the Tax Cuts and Jobs Act, which increased income tax expense. Net revenue for the quarter increased 15 percent to $411.4 million.

A Premier spokeswoman could not immediately be reached for additional comment.

Premier, which provides purchasing and performance improvement services to a network of 3,900 hospitals, employs roughly 2,500 people, and has said that about 60 percent of them are based in Charlotte. The company’s corporate headquarters are in Ballantyne.

DeVore has been CEO of Premier since 2009. She steered the health solutions company through its $874 million stock market debut in 2013.

Ana Irizarry from UNC Chapel Hill’s North Carolina Business News Wire contributed.

Katherine Peralta: 704-358-5079, @katieperalta

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