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Cardinal Health CEO implements tough changes to boost profits

Jason Hollar's strict strategies following a $300 million earnings drop are showing early success.

July 20, 2025 at 10:03 AM

After earnings fell by $300 million, Cardinal Health’s CEO went ‘ruthless’ to turn it around—and he says workers backed him because ‘people want to win’

Jason Hollar leads Cardinal Health through a transformative overhaul after significant earnings declines.

Cardinal Health’s CEO implements tough strategies to boost performance

Cardinal Health, a major supplier in the U.S. healthcare sector, suffered a dramatic earnings drop of $300 million in recent years. Under new CEO Jason Hollar, appointed in late 2022, the company has implemented strict strategies to regain profitability. Hollar's approach includes cutting struggling business segments and focusing on efficiency. He emphasizes 'relentless simplification' and 'ruthless prioritization' as key to the turnaround. Hollar asserts that employees are supportive, as they desire success. This focus has already yielded positive results, with a reported operating income of $730 million in the latest quarter.

Key Takeaways

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Cardinal Health saw earnings drop by $300 million recently.

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CEO Jason Hollar emphasizes ruthless prioritization for change.

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Hollar joined the company amid the pandemic's challenges.

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The company reported operating earnings of $730 million in Q3 2025.

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Employee morale is high as workers want the company to succeed.

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Hollar's strategies focus on cutting unnecessary operations.

"This concept of relentless simplification and ruthless prioritization was the cornerstone of the change management."

Hollar outlines his strategy for revitalizing Cardinal Health, emphasizing efficiency and focus.

"People want to win, and we weren’t winning as much as we could have."

Hollar reflects on employee sentiment regarding the company's previous struggles.

"Our service levels improved dramatically, our productivity, our efficiency..."

Hollar speaks on the positive changes in operations following his leadership.

"There’s one value we don’t show up with every single day, and that’s accountability."

A direct quote revealing the emphasis on accountability in the company culture.

Hollar's leadership style marks a significant shift for Cardinal Health, reflecting a strategic pivot often necessary in large, established companies. His 'ruthless' methods may initially appear harsh, but they indicate a commitment to rejuvenating a company in distress. It is interesting to note that instead of backlash, Hollar found enthusiastic support from employees, highlighting the importance of morale in challenging times. This environment may foster innovation and growth, particularly as healthcare demands evolve. However, this approach could alienate some stakeholders who may perceive his methods as overly aggressive.