Two months after medical software giant Athenahealth went private, the Massachusetts-based company said on Tuesday it has handed out pink slips to a portion of its workforce in an effort to reduce “bureaucracy and consolidate capabilities.”
Athenahealth, a medical IT firm that provides cloud-based software to physicians and hospitals, went private in February after a pair of private equity firms — Veritas Capital and Evergreen Coast Capital — finalized the $5.7 billion acquisition of the company. The sale followed months of public negotiations, shareholder lawsuits and the resignation of founder and longtime chief executive Jonathan Bush amid sexual harassment allegations.
“We recently launched the transformation of our business and are reorganizing our resources as we integrate Athenahealth and Virence Health into a single company with a sharpened strategic focus and unified sense of purpose and direction,” a spokesperson for Athenahealth said in a statement to the Herald.
“As with any large transaction of this size, there are overlaps in functional areas,” the statement continues. “While we’ve had to make some difficult decisions, we have implemented a new organizational model that enables faster decision making, decreases bureaucracy and consolidates capabilities so we can best deliver value to the 160,000 providers on our network.”
The company said on Tuesday that the layoffs would affect less than 4% of its global head count. In November, the Watertown-based company said it had approximately 5,000 employees worldwide.
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