Following a disastrous expansion into the health care marketplace created by the affordable care act, Molina Healthcare appears to be restructuring its operation for changing times. The company’s original leadership, brothers Mario Molina, CEO, and John Molina, CFO, were ousted from the company following the loss of $91 million in the fourth quarter of 2016 and replaced by Chief Accounting Officer Joe White who will act as the interim CEO and CFO.
The plans to lay off 1,400 employees, dubbed “Project Nickel,” are being formulated to improve the 2018 bottom line. The cuts represent an approximate 10% reduction-in-force in corporate employees (6,400) and among the 7,700 who work in supporting Molina’ health plans.
In a memo to employees, White is quoted as saying, “Moving forward, we must be exceptionally strategic in doing more with less.” One might imagine him to add, nothing personal; it’s just business as these employees will lose their job through no fault of their own.
Another political fiasco in the making will lead to further job losses in the future.
Another cautionary tale and a reminder to reduce spending and start expanding your contingency fund.