About 500 employees at Watertown, Massachusetts-based Athenahealth will be laid off as the digital health services company looks to cut costs under pressure from an activist investor.
The Boston Globe reported the cutbacks will result in Athena closing two offices in San Francisco and Princeton, New Jersey. CEO Jonathan Bush said in a conference call with analysts and investors that the cuts would be centered on middle management and “redundant” positions.
“My concern in this process was one of cultural impact. Would this demoralize? Would this demotivate? Or would this inspire? And I am extremely pleased and confident that the answer is the latter,” Bush said. “We have an extraordinary collection of colleagues that are in this for the mission, and they want that mission even at the expense of hard decisions.”
The cost-cutting measures come after activist hedge fund manager Paul Singer of Elliott Management took a 9.2 percent stake in Athena, calling it “significantly undervalued.” Bush said he was grateful to investors for “helping us find our way.”
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.