Blue Shield of California to cut 61 jobs in latest workforce reduction

Blue Shield of California has confirmed its plans to cut 61 positions in its second round of layoffs this year, following the reduction of 140 jobs in January.

In a statement, the company said affected employees would receive assistance through a program allowing them to remain in their roles for up to 90 days while seeking new employment. The program also offers skills training supported by a certified professional career coach.

“As a nonprofit health plan, Blue Shield of California is driven by its mission to provide access to quality health care that’s sustainably affordable for all,” the company said in a report, noting that this includes efforts to reduce administrative costs and improve operational efficiency.

The layoffs, which were filed through mandatory Worker Adjustment and Retraining Notifications on October 2, are set to take effect on December 11 and will be permanent.

The cuts affect eight offices, with the largest reduction – 29 positions – at the Palmdale, California office. Other offices, including those in Lodi, Rancho Cordova, and El Dorado Hills, will each see one position eliminated.

Earlier this year, Blue Shield of California announced a 2% workforce reduction, totaling 140 positions, to address administrative costs. According to California WARN notices, those cuts were spread across 10 offices, with the largest impact at the Agoura Hills location, where 51 positions were eliminated.

At that time, Blue Shield said a total of 165 employees were notified, though more than 20 were able to secure new roles within the company through its employee support program.

Blue Shield of California’s underwriting units hold a current Best’s Financial Strength Rating of A (Excellent).

Recently, insurance provider Asurion also announced layoffs as part of an ongoing restructuring effort. The insurer said the layoffs will affect less than 3% of its 19,500 employees worldwide.

In a previous report, Asurion said, “We’ve evaluated our organizational structures and business processes to reduce decision-making complexity and streamline operations,” noting that the goal is to improve the company’s tech-care services for clients and customers.

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