Molina initiates first round of layoffs

Long Beach, Calif.-based Molina Healthcare distributed its first wave of layoff notices Thursday, signaling plans to cut 54 positions in California by Oct. 1, according to a Press-Telegram report.

The health insurer notified Pacific Gateway Workforce Investment Network, a public job agency in Long Beach, 25 jobs will be eliminated in Long Beach by the beginning of October. The notice revealed plans for an additional 29 layoffs in the state by the same date.

In a Thursday statement to Press-Telegram, Molina said, "We thank all of our departing colleagues for all they have done to accomplish the Molina Mission. We will be working to assist our departing employees in many ways, including severance and outplacement assistance, to ease the transition."

An internal company memo obtained by Reuters Monday indicated Molina plans to cut roughly 1,400 positions over the next few months following a $91 million net loss in the fourth quarter of 2016. The financial results led Molina's board of directors to fire longtime CEO J. Mario Molina, MD, and his brother John Molina, the company's CFO, in May. 

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