Long Beach-based Molina Healthcare Inc. plans to cut 1,400 jobs in the next few months, according to news reports.
The company’s interim chief executive, Joe White, said in an internal company memo obtained by Reuters, which first reported the news, that the announcement aims to reduce costs. The layoffs would affect 10 percent of Molina’s 6,400 corporate employees and 10 percent of 7,700 health plan jobs.
Molina largely caters to low-income patients on Medicare and Medicaid, and it expanded to provide insurance plans through the Affordable Care Act under the Obama administration. As Republicans in Congress move to repeal and replace the landmark legislation, that has created uncertainty for health care companies.
Molina saw its membership and revenue grow last year, but income dropped, according to the company’s annual financial report.
The layoffs announcement follows the abrupt dismissal of the sons of the company’s founder from top leadership positions in May – J. Mario Molina, who was chief executive, and John Molina, who was chief financial officer.
– Shwanika Narayan