Molina Healthcare Layoffs in July 2017 to Cut Over 1,400 Jobs

Paper with Medicaid and stethoscope. Medical insurance concept.

Molina Healthcare Laying Off Hundreds

Molina Healthcare, Inc., a health insurance company that provides plans to the lowest-income families under the Medicaid program, has announced its plans to cut more than 1,400 jobs.

An internal memo sent to employees by interim CEO/CFO Joseph White disclosed that the company is planning to cut 10% of its corporate and health plan staff. The corporate division of Molina currently has 6,400 employees, while the health plan division has 7,700 staff members.

Those employed in Molina Healthcare’s “Pathways” behavioral health segment (about 5,500 workers) will remain safe from the job cuts.

The layoffs come on the heels of hefty losses reported by the company in its fourth-quarter results earlier in February. The company reported a loss of $91.0 million, blaming it partly on former President Barack Obama’s Affordable Care Act, also known as Obamacare.


The company incurred higher-than-expected per-patient costs due to stringent requirements under Obamacare.

Molina Healthcare, which is headquartered in Long Beach, California, is a publicly-traded company that sells healthcare plans in nine states across the country.

Molina Healthcare was a family-controlled business up until May of this year, when the company’s management team ousted the two Molina brothers who who had been in charge of the company.

Founded by C. David Molina, the corporation had been run by his sons, CEO Mario Molina and CFO John Molina. The company fired the CEO and CFO following worse-than-expected losses in the fourth quarter.

The current layoffs are falling under White, who wrote in his memo, “…we must never flinch from making the decisions that will allow the Molina mission to continue. And that mission cannot continue unless Molina remains a strong, independent company.”

The layoffs, which will be taking place over the next few months, are meant to cut costs for the financially-struggling insurance specialist.


CORRECTED-Molina Healthcare to cut about 1,400 positions –memo,” Reuters, July 24, 2017.

Molina Healthcare plans to lay off 1,400,” The Press-Enterprise, July 25, 2017.