Health Insurer Centene Streamlines - Plans Massive Layoffs To Cut Costs: Report
Portfolio Pulse from Nabaparna Bhattacharya
Centene Corporation (NYSE:CNC) is planning to lay off about 3% of its workforce to cut costs and boost profits. The layoffs will affect approximately 2,000 employees. The company's expenses in H1 2023 increased by nearly 3% YoY to $74.11 billion. Centene is focusing on managing government-sponsored health programs and improving its Medicare business quality ratings. However, it is experiencing a decline in Medicaid plan memberships. The company has increased its 2023 premium and services revenue forecast range by $1.8 billion.
September 27, 2023 | 10:49 am
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Centene Corporation is laying off about 3% of its workforce to cut costs and boost profits. The company is focusing on managing government-sponsored health programs and improving its Medicare business quality ratings. However, it is experiencing a decline in Medicaid plan memberships.
The layoffs and cost-cutting measures indicate financial stress, which could negatively impact the company's stock price in the short term. The decline in Medicaid plan memberships could also negatively affect the company's revenues and profitability. However, the company's focus on managing government-sponsored health programs and improving its Medicare business quality ratings could potentially offset some of these negative impacts in the long term.
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