Managed care and Affordable Care Act exchange insurer Molina Healthcare is planning to lay off about 10 percent of its employees in the firm’s corporate and health plan divisions by the end of the September, amounting to a layoff of 1,400 people.
The announcement came in a memo sent to employees by interim CEO Joseph White obtained by the Long Beach Press-Telegram.
“The departure of any of our talented and dedicated co-workers constitutes a difficult loss,” White wrote. “But we must never flinch from making the decisions that will allow the Molina mission to continue. And that mission cannot continue unless Molina remains a strong, independent company.”
Molina has grown rapidly since the ACA was signed into law, with its workforce increasing from 4,200 to 21,000 employees between 2010 and 2016. However, net income declined in 2016, leading to the company’s board firing CEO J. Mario Molina, MD, and CFO John Molina, both sons of the company’s founder.
Read more about the layoffs at the link below:
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.