MetLife to Lay Off 61 in Bloomfield, CT as Life Insurer Swings to Third-Quarter Loss

MetLife Layoffs 2017
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MetLife Inc. (NYSE:MET) filed a Worker Adjustment and Retraining Notification (WARN) notice with the Connecticut Department of Labor, noting that 61 employees at its Bloomfield offices will be losing their jobs. Their last day of work will be December 31, 2017. The layoffs come after the life insurance company swung to a third-quarter loss of $87.0 million. MetLife is not alone when it comes to layoffs in 2017; a number of large insurance companies have also announced layoffs this year.

MetLife to Lay Off 61: Claims and Case Specialists Affected Most

December 31, 2017 is going to be the last day of work for 61 employees at MetLife’s Bloomfield, Connecticut office. The company said this week that it is restructuring operations in Bloomfield and eliminating 61 positions.

The terminations are expected to be permanent. None of the affected employees are represented by a union or entitled to bumping rights.

According to Beth Noonan, MetLife’s human resource director for global operations, “After evaluating how to service a portion of our business we will not be retaining, the decision was made to eliminate the roles currently servicing this business.”

Of the 61 jobs being terminated, the largest number of layoffs are for claims (11 people) and case specialists (10).

MetLife Reports Third-Quarter Loss of $87.0 Million

The announced layoffs in Bloomfield come just one day after MetLife reported its third-quarter financial results, in which it swung to a large loss. For the three months ended September 30, MetLife reported total revenue of $16.1 billion, a two-percent increase over the $15.8 billion recorded in the same prior-year period.

MetLife reported a third-quarter loss of $87.0 million, or $0.08 per share. In the third quarter of 2016, the life insurance company reported net income of $571.0 million, or $0.51 per share.

At the end of the third quarter, MetLife’s book value was $51.83 per share, down 25% from $69.35 per share at September 30, 2016.

MetLife’s results are the first after it spun off much of its U.S. retail life insurance business into a new company named Brighthouse Financial. Charges related to the separation helped drive the company’s third-quarter $87.0-million loss.

Other Major Health Insurance Layoffs in 2017

It’s been a tough year for health insurance layoffs. In September, Molina Healthcare, Inc. (NYSE:MOH) announced almost 400 layoffs. Throughout the month, the health insurer issued 13 WARN notices with the state of California, affecting 390 employees.

During a press conference to discuss the company’s second-quarter financial results, including the $230.0-million loss, interim CEO Joseph White said the company is, “taking aggressive, urgent and determined actions to improve [its] financial performance.”

In October, Humana Inc (NYSE:HUM) said it will terminate hundreds of jobs as it deals with the effects of the failed merger with health insurance company Aetna Inc (NYSE:AET). The Humana job cuts extend all across the U.S.

Back in February, Humana announced 500 job cuts. The terminations were mostly a result of weak sales figures. The company reported a fourth-quarter 2016 loss of $401.6 million. The losses were largely a result of challenges the company is facing in the private Medicare plan market.

AmeriHealth Caritas, one of three private companies that manages care for poor, disabled, and elderly in Iowa who are enrolled in Medicaid, filed a WARN notice with the Iowa Workforce Development agency, noting that 400 employees statewide will be laid off at the end of December.

Lastly, UnitedHealthcare said it will lay off 381 employees in Phoenix. The job losses are related to UnitedHealthcare’s military and veterans contract. UnitedHealthcare managed benefits for TriCare’s west region, but the Department of Defense ended the contract in May. UnitedHealthcare’s contract runs until December 31, 2017. 

 

Sources

List of WARN Notices,” Connecticut Department of Labor, November 3, 2017.

MetLife Laying Off 61 Employees in Bloomfield,” NBC Connecticut, November 2, 2017.

MetLife Announces Third Quarter 2017 Results,” MetLife Inc, November 1, 2017.

WARN Report,” Employment Development Department, State of California, last accessed November 3, 2017.

Molina Healthcare Announces Second Quarter Results and Restructuring Plan,” Molina Healthcare, Inc., August 2, 2017.

Humana to lay off 500 workers in Ohio, Florida,” Cincinnati.com, February 8, 2017.

Iowa WARN Log,” Iowa Workforce Development, last accessed November 3, 2017.

More than 300 UnitedHealthcare Phoenix employees to be laid off,” ABC15, November 1, 2017.

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