Medicaid health plan Molina Healthcare intends to lay off 1,400 employees, or 10% of its workforce, over the coming months to try to offset losses from its Obamacare exchange business, the company said in an internal memo to employees Monday.
The cuts will be across-the-board, including senior leadership, interim CEO and Chief Financial Officer Joe White said in the memo.
"As part of our drive for operational efficiencies, we are simplifying our organizational structure and reducing the size of our workforce. This was a very difficult decision, and one that I do not take lightly," White said.
Molina spokeswoman Laura Murray declined to comment.
Reuters first reported the job cuts Monday.
In the memo obtained by Modern Healthcare, White said the cuts will come in two waves and be largely completed by September.