McKesson Corp. said it has committed to a restructuring that will include layoffs and changes in business operations that the health care services company expects will cut costs by $170 million to $190 million in fiscal 2017, and by $70 million to $90 million in fiscal 2018. The company disclosed in a regulatory filing that it expects to record a charge of $300 million to $330 million as a result of the restructuring, with the bulk of the charges–about $250 million to $275 million–to be recorded in the current quarter, which ends this month. Most of the charges will be for severance and other employee-related costs. The stock, which was still inactive in premarket trade, has tumbled 23% year to date, while the S&P 500 has slipped 0.2% and the SPDR Health Care ETF has lost 8.3%.
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