Centene confirmed it would let go about 2,000 employees or three percent of the health insurer’s … [+]
Centene confirmed Tuesday it would let go about 2,000 employees, which is three percent of the health insurer’s workforce, as the company looks to cut costs.
Centene, which sells an array of government subsidized health insurance including individual coverage under the Affordable Care Act also known as Obamacare and Medicaid for low income Americans, has more than 28 million health plan members. Centene in July reported second quarter profits of $1 billion as membership grew by nearly 2 million thanks to an increase in enrollment in Obamacare plans.
The job cuts come during a key period for Centene, which sells an array of government subsidized health insurance including Obamacare, and is facing more competition in these markets. Meanwhile, the company under chief executive officer Sarah M. London has been divesting assets to focus more on the U.S. and the health benefits the company sells across the country.
“We routinely assess our workforce to ensure we have the talent and expertise necessary to support our members and the evolving needs of our business,” a company spokeswoman said. “Our decision was not made lightly and impacts approximately 2,000 employees, just over 3% of our workforce. Centene will support impacted employees with severance packages and outplacement services, consistent with our standard approach.”