Molina Healthcare is following through with layoffs announced earlier this summer, the company said, with some employees leaving the company Thursday, Sept. 14.
It was not immediately clear how many people in Long Beach or elsewhere were affected.
“Molina Healthcare is undertaking several initiatives to streamline operations, increase efficiencies and improve our financial performance so that we can adapt, thrive, and continue to fulfill the Molina mission as a strong and independent company,” the company said in a statement. “Part of this process involves a reorganization of the company’s structure, which includes an approximate 10 percent reduction in the number of national support and health plan positions.”
Molina Healthcare is Long Beach’s only Fortune 500 company. The firm specializes in providing health insurance to customers benefitting from government programs like Medicare, Medi-Cal and subsidized insurance marketplaces such as Covered California.
The company’s interim Chief Executive, Joseph White, told Molina employees of the layoff plans in late July by issuing a memo announcing a widespread corporate restructuring plan called Project Nickel, which that plan include a downsizing involving roughly 10 percent of the company’s corporate and health plan employees.
The company followed on that memo by sending a legally-required notice to Pacific Gateway Workforce Investment Network, a local public agency that provides job training and employment services, that the firm planned to eliminate 54 California-based jobs by the beginning of October. That number included 25 Long Beach jobs.
Shortly thereafter, in early August, Molina posted a $230-million loss for its April-to-June quarter. The company also provided additional information on its restructuring and future plans at the time. White revealed Molina’s intent to pull out of government sponsored-insurance marketplaces in Utah and Wisconsin and to reduce its participation in Washington state’s program.
White also said at the time that layoff plans could involve some 1,500 people leaving the company.
Molina Healthcare’s layoffs and restructuring follow May’s firings of former chief executive J. Mario Molina and former chief financial officer John Molina. The brothers are the sons of the company’s founder, the late C. David Molina.