Long Beach, Calif.-based Molina Healthcare is poised to cut roughly 1,400 positions over the next few months, according to an internal company memo obtained by Reuters.
Here are six things to know.
1. The eliminations reflect 10 percent of Molina's 6,400 corporate jobs and 10 percent of its 7,700 health plan positions, Molina's Interim CEO and CFO Joe White said in the memo.
2. The cuts aim to spur savings by 2018. Molina recorded a $91 million net loss in the fourth quarter of 2016 and reported $77 million in net income in the first quarter of 2017. The insurer cited poor performance in its ACA marketplace business as reason for the fourth-quarter loss.
3. The financial results led Molina's board of directors to fire longtime CEO J. Mario Molina, MD, and his brother John Molina, the company's CFO, in May.
4. "Moving forward, we must be exceptionally strategic in doing more with less," Mr. White said in the memo, reviewed by Reuters.
5. In addition to its presence on some state exchanges, Molina offers Medicaid plans in 12 states, Medicare Advantage plans and owns and operates clinics in California, Florida, Michigan, New Mexico, Utah and Washington.
6. Molina will report its earnings for the second quarter ended June 30 after the market closes on Wednesday, Aug. 2.