Blue Cross Blue Shield of Michigan will lay off 220 employees, the company said in a statement shared with Becker’s.
The Detroit-based insurer has eliminated more than 600 positions, it said in a June 12 statement. Of those, 400 were unfilled. The company’s stated goal is to reduce administrative expenses by $600 million over the next three years, including saving $285 million in 2025.
Rising medical and pharmacy costs have hurt BCBS Michigan’s finances. In 2024, the company reported a $1 billion loss.
“Over the last year, our CEO has been clear and transparent with our employees about the significant cost pressures facing our business,” BCBS Michigan said.
In January, the company offered voluntary buyouts to employees. More than 500 employees accepted these offers, BCBS Michigan told Becker’s, resulting in $94 million in savings.
“As a nonprofit mutual health insurer, we must manage our finances responsibly, with the interests of our customers and members front-and-center,” the company said. “We owe it to our customers and members to be responsible stewards of their money by looking inward and taking steps to lower our own costs and maintain the quality services they expect.”
At least 18 other insurers have laid off employees in 2025.
