American health insurer Humana is set to cut approximately 2,700 jobs or 5.7% of its workforce amid dwindling profit and uncertainty to participate in Obamacare next year.
The Louisville-based insurer, which sued the US government for $611m over risk corridor payments , aims to considerably slash operational cost with the proposed job cut.
Humana said the company is cutting the jobs to invest in technology and infrastructure in a bid to become more competitive in the insurance market.
The job cuts and layoffs are being implemented across work groups and across geographies through an early retirement program and other efforts.
The employees who did not wish to move into a new position are being offered career counselling, severance pay and necessary assistance with finding a new job, the insurer said.
Humana’s third-quarter earnings dipped 11% to $799m from $902m in the corresponding year ago period, as the company recorded $124m in expenses associated with voluntary and involuntary workforce reduction programmes.