Medco, the pharmaceutical benefits manager, has laid off 900 employees, about 7% of its workforce, as it shut down its Parsippany, N.J. mail order pharmacy and call center.
Spokeswoman Soraya Rodriguez-Balzac said 200 of these employees would be transferred to the company’s other facilities in New Jersey.
She said the decision to axe these employees came about because the firm has improved its technological processes at its five other facilities nationwide.
According to wire service reports, the company reached its decision after losing some major contracts amid a federal probe of its business practices.
A little over a year ago, drug giant Merck & Co. sold Medco Health Solutions Inc., its subsidiary mail order pharmacy and pharmacy benefits management subsidiary, back to its stockholders (Direct Newsline, April 22, 2003).
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