FEBRUARY 18, 2019 TURNAROUND/RESTRUCTURING CONTINUES. MOLINA FILES WARN NOTICE FOR 169 LAYOFFS.
It appears that Molina Healthcare has filed a WARN (Worker Adjustment and Retraining Notification) Notice with the State of California indicating its intention to layoff 169 employees.
Rumor has it that Molina will be outsourcing its Nurse Advice Line operations to San Antonio, Texas-based Carenet Healthcare Services, a contract provider of healthcare support services, healthcare navigation services, care management programs and consumer engagement solutions.
More layoffs coming?
According to a news release, “Molina Healthcare, Inc. announced that it has advanced its information technology capabilities and operational efficiency by signing an agreement with Infosys, a global leader in next-generation digital services and consulting. Under the agreement, Infosys will manage Molina’s IT infrastructure functions, including IT operations, end-user services, and data centers. With this agreement, Molina expects to improve the reliability of its IT functions to better serve Molina’s members, providers, and state customers while also realizing cost savings beginning in 2019.
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.
Are you asking yourself, Am I Next?