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Humana Inc. said Wednesday it will cut its work force by about 5 percent, or 1,400 positions, during the course of 2010.
The health benefits company said in a news release that it will eliminate 2,500 positions, while adding 1,100 in areas like medical cost containment, pharmacy management and specialty products. It plans to make the cuts through attrition, process efficiencies, outsourcing and layoffs.
“This regrettable but necessary reduction in our work force is a direct result of Humana’s need to align the size of our company with that our of membership,” said Michael McCallister, president and CEO, in the release.
Louisville-based Humana's (NYSE: HUM) overall medical membership fell by nearly 1.3 million, or 11 percent, in 2009. The largest drop was among Medicare membership, which fell by about 1.1 million, or 23.7 percent, to 3.4 million.
