Miami-based primary-care provider, Cano Health, experienced a significant decline in its stock price following a warning about its financial viability. The company acknowledged that it lacked the necessary liquidity to sustain its operations for another year. As a result, Cano Health is now considering the sale of its entire business. In addition, the company has expedited its plans to divest noncore assets and will exit operations in California, New Mexico, Illinois, and Puerto Rico.
To address its financial challenges and restructure its operations, Cano Health intends to reduce its workforce by 17% in the third quarter of this year. This amounts to approximately 700 job cuts. Alongside this workforce reduction, the company plans to consolidate its operations in Texas and Nevada.
These measures are projected to reduce costs by an estimated $50 million per year. Cano Health intends to utilize proceeds from the sale of assets to support general corporate purposes and repay debts.
Despite recent setbacks, it is worth noting that shares of Cano Health had risen by 11% since the beginning of this year.