Molina Healthcare, Inc. (NYSE:MOH) will continue to lay off Long Beach, California-based employees through the end of 2017. In August, the health insurer announced restructuring efforts that included the loss of 1,500 jobs across the country. According to Worker Adjustment and Retraining Notification (WARN) filings with the state of California, Molina Healthcare layoffs will include the permanent elimination of about 500 positions in Long Beach. However, recent filings with the Pacific Gateway Workforce Investment Network show that Molina is laying off over 60 employees in December.
Molina Healthcare’s Earlier 2017 Layoffs
After months of speculation, Molina Healthcare officially announced major restructuring plans back in August after reporting a loss of $230.0 million, or $4.10 per share, in the second quarter. At the time, interim Chief Executive Joseph White said he would return the company to profitability.
“The results reported today are disappointing and unacceptable,” White explained. “We must, and we will, do much better and we are taking aggressive, urgent and determined actions to improve our financial performance.”
To get there, the company said it would need to reduce its headcount by 10%, or 1,500 full-time equivalent employees, as part of the Molina Healthcare layoffs. The job cuts were scheduled to be completed by the end of 2017.
“This reduction in our workforce is difficult, but necessary, step as we concentrate our efforts on achieving operational excellence and improved efficiency,” said White. “By transforming the entire enterprise into a leaner, more streamlined organization, we can enhance our decision-making, improve our operating performance, and grow our margins.”
To that end, in July Molina filed seven WARN notices with the state of California announcing 63 permanent layoffs. In September, Molina filed an additional 15 WARN notices affecting 412 employees, and in October, Molina filed one WARN notice affecting 44 workers in Los Angeles.
Molina Healthcare Reported Losses in the 3rd Quarter
On November 2, Molina announced its financial results for the third quarter, ended September 30. The company reported a third-quarter net loss of $97.0 million, or $1.70 per share, compared with net income of $42.0 million, or $0.76 per share, in the third quarter of 2016.
Restructuring costs and the impairment of certain purchased intangible assets increased loss before income tax benefit in the third quarter of 2017 by approximately $247.0 million. Specifically, the company recorded $118.0 million, or $1.39 per diluted share, of restructuring costs in the third quarter of 2017.
“WARN Report,” State of California Employment Development Department, last accessed December 22, 2017.
“More Long Beach Molina Healthcare employees laid off this month,” Press Telegram, December 20, 2017.
“Molina Healthcare Announces Second Quarter Results and Restructuring Plan,” Molina Healthcare, Inc., August 2, 2017.
“Molina Healthcare Announces Third Quarter Results,” Molina Healthcare, Inc., November 2, 2017.