Humana Inc. has announced plans to cut 2,500 positions from its workforce over the course of 2010 in response to a decline in healthcare membership enrollments. The cuts include at least 750 positions at the company’s Louisville headquarters, where it employs some 10,000 people and is one of the city’s largest employers.
Humana President and CEO Michael B. McCallister said the move was “regrettable but necessary” and was a direct result of Humana’s need to align the size of the company with its membership.
The workforce reductions will come from attrition, process efficiencies, outsourcing and position eliminations.
The health benefits company said that while it will eliminate 2,500 positions, the company is also adding 1,100 jobs in the areas of medical-cost containment, pharmacy management and specialty products, and some employees whose jobs are being eliminated may qualify for one of the new positions.
McCallister said the workforce reduction is part of an ongoing initiative at Humana to cut $200 million in administrative costs and is intended to help the company create a more efficient infrastructure while providing the resources to invest in new growth opportunities.
Humana spokesman Tom Noland told The (Louisville) Courier-Journal the job cuts are, in part, in anticipation that some sort of healthcare reform will be implemented at the national level.
Even with a decline in enrollment, Humana remains one of the nation’s largest publicly traded health and supplemental benefits companies, with approximately 10.3 million medical members and 7.2 million specialty-benefit members.