Thread regarding Centene Corp. layoffs

Your PL doesn’t know. 30-40% is not going to happen, not even close.

Last RIF was under 6% with billions in losses.

I heard it was around 25-30% as well. Although our PL is very hush hush they did confirm it was going to be significant.

@df Centene needed Wellcare for Medicare, especially Medicare Advantage.

Centene was heavy with ACA and Medicaid and limited Medicare. Wellcare was Medicaid and Medicare, and I didn't have any ACA.

Trump was immediately saying he was going to repealing and replacing ACA, way back when he 1st ran in 2016. Centene knew they needed to up Medicare big time and would benefit from also gaining more Medicaid members. They needed to spread out where the money came from.

If they had not bought Wellcare and the ACA was repealed or replaced by Trump, Centene would of been sc--wed.

If Wellcare was still their own company they would of only been hurt by the changed to Medicaid and not effected by the changes to ACA since they didn't have ACA plans.

@bp If Wellcare failed, then why did Centene buy it?

@a8 i hope so. So sick of the wellcare mafia just promoting each other. Buncha of terrible employees which is why the company they came from failed and got purchased!

@b6 completely different ballgame this time around and that was 3,000 people. H contracts are being lost, massive membership losses and a lot more to come. not to mention the HEAVY push of AI. it’s basically been shoved down our throats.

I do not think they would offer 95% of the workforce a buyout for 2,000 RIFs. just think of the cost of this third party who’s managing it. they would just cut the 2,000 and move on.

I feel like it’s at least 6,000 employees.

Lord people. Last time a massive cut was made, we cut 2,000. There have been RIF's each month for the last year - 20 here, 5 there, 35, etc. So they've already trimmed 1000+ over the last year. 20-30% is a crazy person taking with no idea how any of this works. My guess - they're aiming for 1500-2000 VSP. And if they hit it, prob very limited RIF's after.

while we don’t know the true number, I think people are missing that if 12,000 positions are eliminated, some of that cost savings will be used for new positions that align with the new strategic direction.

not every position is direct member facing or even indirect. like how many Talent Advisors and Employee Relations employees are needed? think about Learning and Development, Internal Communications.

unless there is something critical that impacts the member, providers, Stars and health plan ratings or reduces risk risk, staff can greatly be reduced in those areas. projects can be cancelled. they will prioritize job functions that bring in money into the business and impact the member experience.

@ag Q2 earnings report has a footnote buried in the back pages that says a projected 20-24 million in severance cost this year. If the average package is 20-24k (I don't know, just a wild guess), that's about 1,000 employees with severance packages. However, my guess is things got more dire after they put that estimate in the Q2 earnings report.

I estimated about 25 to 30% that sounds about right.

Liar!!!!! Sarah is that you? 🤣🤣🤣

you are a mo--n. hopefully you are gone 1st.

Does anyone even know the current number of employees? I doubt it’s 61k, which is what the press is reporting.

Genuine question: how could they be adamant about retention and culture a year ago and then slash and burn this year? Are the board and SLT really that clueless?

I hate to agree, but 30% does not sound crazy given the current situation with marketplace and Medicaid. Don’t forget the pockets that need to be padded in the future.

Those would be huge numbers. As someone else pointed out that’s around a 30% reduction in headcount. Difficult to see the company surviving in its current form if that’s the case.

@af I mean that makes sense. 7/28 their earnings date aligns around the same time of announcing who might get affected by the layoff, I assume they should give more clarity to their investor first. I think We should all listen to that earnings call that day

I was told that they will be providing actual layoff numbers during the July 28th earnings presentation to shareholders.

@OP Ah, c’mon OP, don’t be shy! Give us your name and what you do. It is just us here and I am sure everyone here reading your post promises not to tell!

I’m just kidding around. We respect the secrecy of your Clark Kent or Peter Parker identity.

People are getting things twisted. Marketplace lost about 30% of membership yoy. Overall membership is down about 6% nationwide.

There is no way in he-l 30% of staff is being VSP’d and or let go. 0% chance.

@a8 the fu-k? yeah... I'm out. absolutely not.

Is it true they are getting rid of Legacy WellCare employees to reach there threshold?

What criteria is being used for the decisions? There are many people that are not accepting the VSP.

@a5 i mean we are all just speculating at this point. Anything is possible, we will know the final answer as time passes

@a1 Not really

https://www.facebook.com/reel/782769730934629

@a3 I obviously know nothing - that number just seems insane if it was accurate

@a1 I've also heard that they were aiming at 30% - 40%

That would be massive. Who is going to be around to service the members and providers? Will they be just in an endless loop with AI? Hypothetically if they were to exit the Marketplace product entirely I don't think you would hit over 5,000 cuts unless they are going to exits some states Medicaid and Medicare products.

18000 out of 61000 employees is 30%. That’s the same percentage i have heard people saying recently on here and reddit. I believe that is false.