Quest Diagnostics Incorporated (DGX: Quote), provider of diagnostic testing, information and services, launched a major management restructuring. The company will eliminate existing business structures and replace them with two new business groups, Diagnostic Information Services and Diagnostic Solutions. The changes are scheduled to take effect by January 1. The company expects it will be able to eliminate three management layers, or approximately 400 to 600 management positions, by the end of 2013, thereby contributing about $65 million in savings to the previously announced cost reduction goal of $500 million associated with its Invigorate program.
The Diagnostic Information Services group, which will include the vast majority of the company's revenues, will replace the current Physician Services, Hospital Services and Cancer Diagnostics businesses. It will develop and deliver diagnostic testing, information and services, and be responsible for new test development; sales and marketing; routine and esoteric laboratories; and field operations.
The company also appointed senior leaders to head its new Commercial, Operations and Human Resources functions. Everett V. Cunningham will join the company October 15 to become Senior Vice President, Commercial. Cunningham was most recently Regional President, Established Products, Asia for Pfizer, Inc. John B. Haydon will join October 22 to become Senior Vice President, Operations. Mr. Haydon is currently Executive Vice-President and Global Head of Operations and Business Excellence for Philips Electronics. Jeffrey S. Shuman will join October 22 as Senior Vice President, Chief Human Resources Officer. Mr. Shuman was most recently Senior Vice President: Chief Human Resources and Administrative Officer for Harris Corp.
Quest also announced that several senior leaders will be leaving the company. Richard Mahoney, Vice President, Healthcare Information Services; Joan Miller, Senior Vice President, Oncology and Neurology Services; and David Norgard, Vice President, Human Resources, plan to leave the company by year-end. Joseph Benage, Vice President, Insurer & Employer Services, will leave in 2013.
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by RTT Staff Writer
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