Caremark Inc. to Cut Newport Personnel to 15

Caremark Inc. will reduce its Newport Beach work force from 200 to 15 people following an imminent reorganization of the national health-care firm, which was purchased earlier this month by Baxter Travenol Laboratories Inc.

Caremark Chairman James Sweeney said “many, but not most” of the affected employees will be offered jobs at Baxter Travenol’s headquarters in Deerfield, Ill., where Caremark’s Home Health Care of America division will be consolidated with Baxter Travenol’s Travacare home health care division. He said the number of employees who will receive relocation offers will be released in about two weeks.

Caremark’s remaining Newport Beach workers will be laid off over the next few months with regular severance benefits, Sweeney said. Some will be offered additional compensation to stay with the company during an extended transition period before losing their jobs.

Those employees who will not receive relocation offers are being encouraged to apply for positions at Baxter Travenol facilities in Southern California, where the company employs 6,000 people, Sweeney said.

The combination of Caremark’s and Baxter Travenol’s home health care divisions will be known as Caremark Homecare. The consolidated operation, expected to generate $400 million in annual sales, will report to a group of 15 Caremark executives, including Sweeney, who will remain in Newport Beach.

“They’ve decided to carry the name Caremark on the banner of the health care division, and I feel very flattered about that,” said Sweeney, founder of the company.

Dorothy Ryan, an analyst at the brokerage firm Swergold Chefitz & Sinsabaugh Inc. in San Francisco, said the reorganization plans appear logical. “They’re getting into a good position to exploit the market,” Ryan said.