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Sept 26 (Reuters) – Health insurer Centene (CNC.N) will lay off 3% of its workforce, or about 2,000 employees, a company spokesperson said on Tuesday as the company tries to lower costs.
The company, which makes a major chunk of its revenue from government-backed Medicaid memberships, has also been selling some of its business units to refocus on its core business.
Last month, Centene sold its UK unit to UAE’s PureHealth in a $1.2 billion deal and also divested its AI platform Apixio earlier in the year.
Centene has been working to enroll people back into its Medicaid plans after the end of pandemic-relief measures left hundreds of thousands of members without coverage.
The company lost more than 260,000 Medicaid members in the second quarter due to redetermination, a process that assesses eligibility of members.
The layoffs were earlier reported by the St. Louis Business Journal.
Reporting by Shivansh Tiwary and Sriparna Roy in Bengaluru; Editing by Shounak Dasgupta
Our Standards: The Thomson Reuters Trust Principles.
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