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Missouri-based Centene to cut work force by 6 percent

The health insurance company headquarted in Missouri said it plans to reduce its workforce by 6 percent amid Q4 losses. The cut will eliminate 3,000 jobs and remove another 1,500 open positions.

A Missouri-based health insurance giant, Centene Corp., will soon be cutting thousands of jobs.

According to Centene CEO Michael Neidorff, around 3,000 positions will be eliminated as well as another 1,500 open positions, representing about 6 percent of its workforce.

The job cuts arrive after a reported Q4 loss of about $12 million.

Although revenue went up 48 percent in Q4 to $25.5 billion, the losses incurred compared with a $209 million profit in the same period of 2019.

For 2020, Centene reported revenues rose 49 percent to $111.1 billion, compared with 2019. Profit totaled $1.8 billion, compared with $1.3 billion in 2019.

The decision to make cuts is being made to meet “margin expectations and expansion objectives,” Neidorff said.

The reductions are in areas where the company has “significant overlap” from acquisitions “and where we have opportunities to leverage our size and scale for increased efficiency,” Neidorff said. in a meeting with investors.