McKesson to chop 1,600 jobs as it sees price hikes for generic drugs slow

Drug wholesaler McKesson ($MCK) told investors recently that fading price increases for generic drugs was going to be a drag on its earnings for the year, dropping its forecast. Now to prepare, the drug distributor is whacking about 1,600 jobs to cut costs, Bloomberg reports. In a statement to the news service, San Francisco-based McKesson said that "reductions to our workforce would be necessary to align our cost structure with our business needs." The cuts follow a series of deals McKesson did to expand internationally. Earlier this month it agreed to pay $2.23 billion (C$3 billion) to buy the Rexall Health in Canada from Katz Group. Story | More