Citing a plan to adopt a more "modern, flexible work environment," Centene said June 17 it is planning to reduce its real estate footprint by 65 percent.
The St. Louis-based payer said during its first quarter earnings call in April that it would be reducing its real estate footprint by more than half and more details regarding that plan would come during its June 17 investor day.
Centene is expecting a one-time cost of $750 million to $800 million to terminate leases and decommission space, according to a company news release. Those costs are expected to be recorded primarily in the second and third quarters of 2022.
The company said the reduction will reduce expenses by $180 million to $200 million annually.