$65.42 to close the day. Up $1.17/share. Market is optimistic with the plans for reorg and administrative expense cut through 1,500 layoffs. Make no mistake, this affirms the Board's decisions and BCG's direction to address admin costs plus other expenses that barely cover almost $19B of revenue. Keep your eyes on this indicator as strength in stock price validates cuts.
11 replies (most recent on top)
Sorry correction -19B to my post above
Wow..what about the member's not getting services because community well case managers are expected to support as many as 200+ members. What about the fact when calls are made to CM's by member's it takes days to hear from them d/t the work load?
I believe the dream Dr. Molina had is being decimated by greed. It makes me nauseous. 95B ?? I am quoting from a high ranking executive, "the company is not in a good financial position" How is that possible?
And don't get me started about the reverse racism running through this organization. Lack of production is being protected if you are the right skin color. I see this everyday. This is reminiscent of a self inflicted union mentality. Hmm..Maybe that is what we need to protect all employees.
This company is nothing but a production line operating on the backs of some good hard working people. The waste of paying non-productive employees is mind blowing. The answers in the past to control cost? Don't print in color, cut back on catered food events...
Now we have Mr. White.obviously, his job, in my view, is to axe expenses . This person alone has caused so much upheaval by doing "waves" of adjustments to the work force he has lost months of productivity and service to our member's. There is no compassion for our member's anymore from his level. He is totally and only concerned with the bottom line. Sad thing is he isn't even doing that right!
Molina's future is bleak at best. It will survive as a medicaid provider only like the "old days". If I held Molina stock I would sell now with this man steering the ship,,because there is a big Ice burg straight ahead! The ACA is imploding!
As a Molina employee, I love this site. It allows me to extinguish the smoke being blown up our butts by the corporate crap posted above.
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Cuts are needed not only to keep the stock price up. It is to have the company survive. Not to be profitable, or profitable enough is not sustainable. The Molina's tried to fix this, but were too slow or indecisive. If they had been more pro-active the big layoff could have been prevented. But then they also did not stop nepotism and promoting unqualified people. All in all they lacked the toughness to take the necessary actions and in the end may have made it worse for the employees.
Ehhh
Temporary good sign. Down 1.23 so far today.
The candid response is that no company can run just so employees can keep the jobs and pay their bills. Every public company must keep its stockholders happy. So to the person that is not happy about restructuring, I may not have a job tomorrow and so will 1400 other colleagues of mine, but the truth is because of restructuring thousands of people WILL have their jobs for hopefully many many years to come. Good luck to everyone those who will meet the ax next week and to those that will live through this round.
Fair enough. The poster considers people to be far more valuable than money. No harm intended. People need to come to grip with their value to a corporation in the grand scheme of things...it's all situational...temporary. Invest in eternity...the return is better.
So how do you suppose they keep a business running if they keep all of the employees? This is business. They grew too fast and now they need to cut back. The board is SUPPOSED to keep the stock price going up - that's how a business profits.
I'd love to hear suggestions on how to keep any business running without trimming the fat. Please, enlighten me. Would you like to print more cash? Take out some loans? Get a government bailout?
Thank you Dorothy. I know you have everything figured out. Yes God is still on His throne and everything is going to work out. I am not concerned about myself. I just don't like the fact that the post put money before people and try to rationalize the layoffs.
No argument with observations of the collateral damage that comes from growing fast, mismanagement, bad business decisions. MHI is probably over-staffed by 2,000 employees in the total 15,000. We both could bemoan the 1,500 in process of losing jobs while keeping hope alive for remainder. This is not completely uncommon in the insurance industry. I suspect they have under-estimated and there will be a wave 3 before year is out. Irma hitting FL could also accelerate losses in insurance industry and this cuts. Won't bore anyone with potential impact of a hydrogen bomb hitting the mainland. Remember...God is still on His throne. Always and forever! Relax Francis. It's all go to work out.
Thank you for teaching us a lesson on how to keep the bottom line of the company and to satisfy the shareholders which is by cutting the hard working individuals who haven been working for this company, some of them for more than 10 years. And the reason for cutting ties with them is because we would like to see the stock price goes up...Yahoo! Forget about all the workers who have to support a family and have bills to pay. Just cut cut and cut so the stock price can grow! And who were one who expanded without control in the first place?!