Molina Healthcare NM to lay off 81
For-profit company says cuts will hit employees in services department
Molina Healthcare of New Mexico, one of the state’s largest insurers, said Monday it will lay off 81 employees.
In a statement, the Long Beach, Calif.-based for-profit company said the local layoffs will hit the company’s health care services department.
The effective date for the layoffs is May 19, according to a spokeswoman.
“Due to restructuring of state contract guidelines, we are overstaffed,” Molina said in a statement, but by deadline did not elaborate on just what the restructuring entailed. Nor could the spokeswoman pinpoint what tasks were performed by health care services department personnel.
“Molina appreciates the contributions these employees have made to the company, and we are working with them to answer questions, provide support and help in any way we can,” said the statement.
The company’s current New Mexico workforce stands at about 1,100 employees.
In the past month, Molina has experienced turbulence in its top ranks.
In April, Patty Kehoe resigned as president of Molina Healthcare of New Mexico, citing personal reasons.
And last week, the company’s CEO and CFO, both sons of the founder of the company, were fired.
The loss of higher ups stunned industry analysts and prompted speculation that Aetna, Anthem or other insurers would seek to acquire the company’s sizable book of business across various insurance lines. The company’s new chairman of the board refuted the possibility of a merger or acquisition.
The company has 4.2 million customers in 12 states and Puerto Rico.
It posted $17.8 billion in annual revenue last year.
With 255,000 customers in New Mexico, Molina provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplace.