Thread regarding Anthem Inc. layoffs

Anthem IT

It was originally thought by Anthem IT associates, including mid-to-lower level IT management, that Legato was being formed in India as a means to replace the contracting services offered to Anthem by companies such as Deloitte, Cognizant, US Technology, etc.

However, as layoffs in Anthem IT have occurred over the course of 2019, the Legato staff in India has continued to be increased while the internal Anthem IT staff onshore in America has now been cut at levels of 40-50% in some areas, so that obviously was not the plan.

These RIF's have been done in multiple stages, and the high-level plan is for that to continue through the end of 2020. Even some Anthem IT associates who moved to Anthem core locations such as Atlanta have been impacted by these RIF's, with many of them having to move back to where they originally lived at their own expense.

These RIF's in the Atlanta location have been so significant that Anthem will not be able to meet their contractual agreement with the State of Georgia regarding job adds over an initial five-year period, and that will result in Anthem losing a $50-plus million state-sponsored tax incentive.

One would think this would have been reported by either the Wall Street Journal or the AJC by now, and that Anthem stockholders would be interested in this information. However, this information has apparently been kept "under the covers" by Anthem up to this point.

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Post ID: @ZuX8nYf

7 replies (most recent on top)

Legato does not have a problem hiring resources but rather will be hard pressed to retain these resources. They are bringing in thousands of associates and in IT development they have four levels in the job family. Everyone knows the culture in India is career advancement. They have not positioned themselves to be able to promote these associates so they will leave quickly. The other problem Legato will face is not investing in training programs and documentation. Our vendors have training facilities and invest in training. Anthem/Legato does not. When they lose resources they will have to rely on those still there to train them and this takes away from production. When will Anthem learn how to plan and invest in their associates, they have a tendency of doing everything half a$$. Good luck.....

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Post ID: @ZuX8nYf-bwyr

I heard the Legato new hires are taking all the IT training and turning around and leaving. Lol- you get what you pay for.

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Post ID: @ZuX8nYf-afmq

HOW is this legal? There is little communication and the stress is beyond belief. I know everything Anthem is doing is legal, but it certainly isn't moral.

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Post ID: @ZuX8nYf-9yny

Legato india head count crossed 4000.Initially most people were hired from different consulting companies who was working for anthem.Later on it was just adding head count and now when they start working on project these people do not have any clue.One thing I would say it is not easy to maintain a captive unit.For consulting companies can ramp up and ramp down quickly and deploy additional people with another client.But Legato can not do.Once you start firing people you will not be able to hire cheaply next time

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Post ID: @ZuX8nYf-9qiz

IT is such a large cost center it always gets hit.

This is so sad.

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Post ID: @ZuX8nYf-4dvu

Yep, pretty messed up...

BS we got fed about replacing contractors

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Post ID: @ZuX8nYf-4qdz

@ZuX8nYf I remember that line of BS we got fed about replacing contractors.

But the bit about missed employment contractual obligations is very interesting. Wonder if a similar obligation is binding in CA/NJ/OH and VA.

Anyway. look around the different Anthem posts on this site and you'll see lots of threads about reporting to the media. You might find something helpful. Most are angry posts - but who can blame anyone in the same shoes?

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Post ID: @ZuX8nYf-2yqh

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