Elevance Health is implementing significant cost-cutting measures across five different markets to mitigate the impact of a 1.5 million membership loss and poor investment decisions. To appease shareholders, the burden has fallen heavily on employees, with the company's growth strategy now primarily focused on layoffs and acquisitions to offset tax penalties. During a recent high-level meeting, CEO Gail Boudreaux presented an aggressive target for reductions to boost the organization's share value. The cuts, including those affecting overtime, hiring, and other expenses, were meticulously designed by the HR team to prepare associates for upcoming reductions in force (RIFs). The first round of layoffs commenced in mid-May, with subsequent rounds planned for summer, November 2024, and March 2025. Additionally, there is a plan to offer voluntary separation packages with severance for employees nearing retirement, which will be rolled out by market. The message to employees is clear: those unable to cope with these changes should consider leaving the company, as no one is safe and everyone is fighting for survival.
56 replies (most recent on top)
GET OUT WHILE YOU CAN! Boudreaux sent the company into the cr-pper when she came on the scene; it’s going to get way worse before it gets better! When I saw what was looming on the horizon I retired out and it was the best decision I could have made. Doing more with less, at the expense of the health snd wellbeing of associates had destroyed the company and morale of those tasked with dealing with the slings and arrows or a disfunctional leadership team.
@7hva+1sTFLIMT ... that is NOT true. It all depends on the state requirements.
@7hva+1sTFLIMT maybe it's state dependent. In California, you get a two month notice with a warn notice. And it's required for a company this large if you're letting go more than 50 people. Last time they had a warn notice it was for 87 people. Doesn't matter what severance you offer.
WARN notices do not need to be given out if the appropriate amount of severance is provided in the place of a notice. WARN notices were really designed to protect employees from sudden company closure.
Calpers is a huge chunk of Anthems business. Other groups are on the brink of leaving as well. This place has been a complete sh-t show for the last year and a half. Leadership is full of horrible ideas and do not understand how thermal decisions impact the business.
So we lost the entire CALpers contract-yikes we had that for over twenty years. That will leave a mark for sure. 20% cuts sound plausible. Or did I misunderstand and we still have part of that contract? We lost a few counties for Medicaid in CA too I think...
According to other thread replies, layoffs also happened today.
@7wxh+1sTFLIMT I thought that the 1.5M included that and did some Googling. The CalPERS decision was announced yesterday, so it’s another 1/2 M on top of what the OP mentioned. We’re bleeding membership. Time to get the resume and LinkedIn profile updated.
https://www.calpers.ca.gov/page/newsroom/calpers-news/2024/calpers-announces-new-health-plan-contracts-to-lower-costs-and-improve-quality-and-accountability
@7poe+1sTFLIMT it's a total of 1.5M that Cal Pers provides health coverage for. Is that the 1.5M that the OP posted about? Wow. We are all fu---d. Hey, this is what happens when you offshore everybody and your company becomes a big pile of sh-t. Cut costs, sell your stocks high, and get the fu-k out before it all collapses. Gail's plan.
My last class for my Masters wraps up next month, thankfully I’ve got the degree completion in my performance plan to make it harder for them to deny reimbursement. It takes so long to get reimbursement these days.
@7lne+1sTFLIMT Good point. I just checked CA WARN listings. They last updated on 6/7. Maybe they will update tomorrow?
Might be more than 12%. Just speculating here.
CalPERS just posted their decision on the RFP for benefits for 400K state employees. They dropped Anthem in favor of BCBS of CA for 1/1/25. Even though they’re ASO, that’s gonna hit the bottom line hard. We only use one tool in our toolbox of increasing shareholder value. And it’s us.
@7lgh+1sTFLIMT if that's the case, this should trigger WARN notices in a lot of states. How are they going to get around that?
It is not a 12% cut in costs. This a headcount reduction.
I know this as we offered up costs and were told to give names.
You will see this clearly on 8/8.
@7bnr+1sTFLIMT yeah. It's a 12% cut in costs. So if they have been told, if they have a way of saving 12% without letting people go, they can do that. That's impossible for most departments without letting go of at least 1 employee per manager.
@7reo+1sTFLIMT that's probably a voluntary separation package. She's 64 and she's cashing out some of her stocks ( or all?) on the way out. Retiring with at least 7.5M, must be nice.
Why do people keep asking if a particular department will be impacted?
This is a company wide RIF. If you work for the company, your org will be impacted. The baseline reduction is 12% with some departments losing 20%
Does anyone know if Medicaid/Medicare from the GBD side will be impacted?
Yes, GCIO will be impacted.
Does anyone know if IT in particular GCIO be impacted and offer early retirement packages?
hmmm
https://www.marketbeat.com/stocks/NYSE/ELV/insider-trades/
@6yuq+1sTFLIMT I think it’s a month of severance and 1.5 weeks for each year of service. Maximum payout 26 weeks. At least that’s what it was several years ago. They’ve changed so much and not for the employee’s benefit.
I just got RIF’d and had well over 20 years. I got 26 weeks.
I wouldn't mind staying but I know of at least six that want out like yesterday. Getting let go would make their day. They have actually said this to me. How many weeks severance would I receive if I've been with the company for three years? Kinda curious. Thx.
This is a mismanged company. It's shocking to see how poorly it is run from the top down. I'm heading back to the tech sector. Good luck to all of you.
@6bma+1sTFLIMT any word about Marketing and Creative departments?
Managers in many LOBs asked to submit 1 to 2 names of the lower/non-performers. GBD, Commercial. To be fair, there is a lot of that and they've been allowed to float for years. We shall see 8/8. It would help morale if they announced the voluntary separation package early. They may get the exodus they want.
I am getting out of here. Have an interview today matter of fact. I don't want to sit here and watch my peers go through this anymore. I find it super interesting is they're hiring a ton of customer service folks offshore. So we have money for that. There is a travel freeze, and in some departments there is a hiring freeze in my business unit. My poor staff is ragged, burnt out, half the time I'm talking them off the cliff, or they're crying in meetings. Our business model is in shambles, You know the three letter acronym that begins with an S and ends with an S. The CEO is a mo--n. Get out of this company while you I still have your wits about you. There's been several times that I've almost just exploded in meetings and wanted to scream at people because no one wants to listen, no one wants to help, and no one cares.
Depends on the manager/department. With the big RIF last fall most people had another 30 days to wrap things up, some people were let go immediately. There were also individuals who stayed on until the end of the year.
If I get the notice on 8/8, how long will the company make me stay? Will they release immediately or will I have to work another 30 days?
I wish they would let those of us who are 60+ know now if we are being riffed on 8/8 so we can start taking our mid-afternoon retirement naps sooner. This place has completely burned some of us out and we are more than ready to leave with our 6 months of supp pay.
@5dhy+1sTFLIMT
8/8 = day for notifications out to impacted individuals. The 2 months referenced is the advance notice HR requested in order to prepare all the termination documents (so ~ June 8, which is why there is all this buzz now).
@5dhy+1sTFLIMT I'm assuming the two months notice was for managers, not for those impacted.
Anything on the Medicare/Medicaid side?
I forgot to ask before, when you say 8/8 is that to be the last day or would that be when the notice is given? I just saw 2 months in one other comment and got confused
Somebody at a higher pay grade than I had stated they had to make a case for our team, and I’m looking at that in a new light now, not that I hadn’t before…although I’m not sure how to state what area I’m in without giving it away completely :/
@@5bsa+1sTFLIMT - the one on the horizon is enterprise-wide. I don't think many if any departments are safe.
@5bsa+1sTFLIMT
The company doesn't care about your commitments, noble though they may be. You are a number, and when your number's up, it's up. They don't care about YOU...or any other employee. EVER! They care ONLY about how much they can line their greedy little pockets with money. If they have to wipe out your whole family to get a few bucks, they'll do it. It's the sad truth. They're EVIL. I hope you fare better than I, or most others, have. Good luck.
Will the RIF affect Carelon training deparment? I have responsibilities like a home, mortgage, and taking care of others.
@4qwv+1sTFLIMT
Consumer Experience Office. They mostly support the call centers with developing service models, member “personas”, and technical/soft skill trainings. They run projects like digital adoption.
What is CXO?