About 2,500 Humana workers face losing their jobs By Jere Downs • jdowns@courier-journal.com • February 17, 2010
About 2,500 Humana workers will lose their jobs companywide, including at least 750 at its Louisville headquarters, as the insurer adjusts to fewer plan members and prepares for the possibility of health-care reform.
“This regrettable but necessary reduction in our workforce is a direct result of Humana’s need to align the size of our company with that of our membership,” Humana CEO Michael B. McAllister said in a statement.
The company says the cuts will be partially offset by plans to add 1,100 jobs, partly to build more Web-based tools that allow doctors and patients more closely monitor how much is spent on health care.
Workers affected by the cuts announced Wednesday could transfer to one of the new jobs, but either way, total payroll will fall by 1,400 — about 5 percent — to about 26,800.
Humana’s Louisville work force will drop from roughly 10,000 workers to 9,250. The local work force is paid about $610 million a year, according to a study by University of Louisville economist Paul Coomes.
The cuts will be spread across the country, with the bulk occurring in Louisville and Wisconsin where 275 positions will be eliminated. Humana bought an employer-sponsored health insurance provider in Green Bay in 1995.
The job cuts came two weeks after Humana announced its profit topped $1 billion in 2009 — a 61 percent increase from the year before, when investment losses hurt its results.
Insurer Aetna has cut 1,250 jobs since November. WellPoint and Cigna also have cut more than 1,000 jobs since the recession started.
City and state officials were confident that while the job cuts will hurt in the short-term, they’re confident the moves will put the company in position for greater growth.
Humana notified some workers on Wednesday they’d lose their jobs and the company will continue eliminating positions throughout the year.
In addition to severance pay and health benefits, laid-off employees will be given 60 days notice, which should allow them time to apply for one of the new jobs, company spokesman Tom Noland said.
