After significant earnings losses, Cardinal Health's CEO Jason Hollar implemented a strategy of ruthless prioritization and simplification to revitalize the company. This strategy involved cutting underperforming business segments and streamlining operations. Hollar's approach, which he describes as 'ruthless,' required stopping certain activities entirely rather than merely reprioritizing. Previously, Cardinal Health faced a $300 million earnings decline, but these changes resulted in a substantial recovery, with the business achieving $730 million in operating earnings for Q3 of the 2025 fiscal year.
“This concept of relentless simplification and ruthless prioritization was the cornerstone of the change management and the strategy,” Hollar tells Fortune.
“I use the word ruthless for a very particular reason, to put a little bit of an edge to it, because I didn't want people just to reprioritize everything they're doing. I wanted them to stop doing certain things.”
Before Hollar took the reins, certain segments were costing the $38 billion health care company hundreds of millions of dollars each year.
But instead of revolting, he reveals they actually embraced the changes: 'People want to win.'
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