More layoffs happening today. I don’t know the extent of it but I know of some people that just got let go.
Rumor has it that this will continue weekly until year end.
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In regards to skirting WARN act...its certainly possible that they are trying to, but one thing you'll find if you research WARN is that a company can give you 30 days pay in lieu of providing the notice that the WARN act would require. Believe me, the HR department is on top of that/tracking
Appears they are staggering layoffs to skirt Federal WARN ACT laws and avoid having to pay employees for notice period. If you are affected contact Department of Labor. This has to be investigated. 1-877-US-2JOBS
They finagled some of them to be classified as early retirements.
There are a lot of loopholes in the WARN act, such as "faltering business". and remote work is somewhat of a gray area
How have they avoided the Federal WARN act with this mass layoff?
From what I understand it will continue through the end of the year. Lots more layoffs coming up.
So will we have MORE layoffs again NEXT week? Or are we done for a while now?
I need a vacation…
Oh wait we got screwed on that also. So I have no PTO left to take for the holidays.
Not speculation. Fact. More accounts are being lost than are being gained currently due to this poor business. I’m in the middle management tier and we have been discussing this issue continually.
I work on a long standing state account. I think we lost just one person this week.
Wow, the post about the CEO communication was interesting. The post that provided details about burning through cash was helpful. Looks like execs hired a "fix-it squad" called Delivery Enablement, and there was an expensive DDI group of people and a Molina to DXC transition that burned some serious cash. Lots of good people negatively impacted already, any speculation on negative client impacts? A post below stated government contracts will still be around whatever happens to Gainwell but any opinion on clients already impacted or will be impacted by poor service?
So Mr CEO sends out an email about the shooting in Maine, but can’t communicate about the thousands that he laid off within his own company. WTF?
Don’t get me wrong here I’m not being inconsiderate of those victims. That was a terrible tragedy and I truly care about the people impacted and their families. My point is just about the lack of communication and the lack of value that Gainwell puts on its own employees.
The government contracts will be there long after Gainwell is done circling the drain.
So they created an Employee Action Team to help come up with ideas to make employees happy. The 2 individuals running the program were cut. Notified they lost their jobs the same day. Pretty sh---y. They don’t care about their employees.
The reductions will continue through the end of the year. The goal is reduce by 45% overall. Cash reserves are depleted. Something drastic has to happen quickly. You should feel lucky if you get a severance. Once the money is gone there can’t be any severance.
Be prepared. This is just the start.
I know that many of you are arguing that this can’t happen. That the company can’t function. Well I’m here to tell you that it is going to happen. It has already started.
Be prepared.
Gainwell let go some talented people this week. After 2.5 years of working and building relationships. I'm cut. They cut a lot of staff at the end of October. A very bad time of year to get "workforce reduced " WTH. It was made extremely clear that they don't give a damn about the employees that worked hard to pull them out of the Molina and DXC transition. That translates to poor leadership.
I literally just got converted to FTE. Jesus I didn’t realize it’s gonna be this bad?!
DDI. I have been working in DDI and to date none of our initiatives have been successful. It is a huge drain financially on the organization. It is a department that could be completely eliminated. We are just spinning our wheels and accomplishing nothing.
This is one example of many - poor management decisions in this company.
They could cut many more positions without compromising their business.
So much failure in this company. And all driven by poor leadership. And such poor communication to go with it. The sheer lack of value they place on the employee is astounding.
Everyone here should be wise to it by now. I would hope that everyone is on the way out by their own choice.
There are plenty of posts on here explaining this. But let’s keep it simple.
Gainwell is bought by Veritas for $5b. They quickly purchase HMS for $3.4b. Since then Gainwell has oversold and under delivered on every single account. The only exceptions to that are the old accounts that have existed for greater than 5 years. Gainwell leadership thought they needed to do something about this so they put together something called Delivery Enablement. It was a group of many initiatives meant to right the ship. These were things like Gabby, GIO, and the like. These initiatives cost a significant amount of money to purchase, bring on a vendor, and implement. They hired teams of people to implement them. Nearly all initiatives failed. Cost the company hundreds of millions. They also created something called DDI. This initiative fell to the same fate. It also cost the organization millions of dollars. If you do some digging you can see that in one year the company has lost over $200 million in cash reserves and their reserves are nearly depleted. The leadership under the previous CEO and the current CEO is the same philosophy. If it isn’t working then throw money at it. Hire a slew of people. Implement some shiny new software that is expensive. This poor management has driven Gainwell into a near bankruptcy position. Their reaction is to lay off. The reference to McKinsey is that they hired some leaders that used to work for that organization. And that organization was poorly managed as well. So the poor philosophy carried over. It seems that Gainwell cannot climb out of this hole. The leaders do not have the expertise to do it. And they do not value people.
A sale or bankruptcy if not both are imminent.
All interesting posts on this thread, but where is the meat that might be news worthy? Public records show Veritas has $8.4 billion cash invested in DXC ($5 billion inclusive of Molina Medicaid Solutions - which was only $231 million) and HMS ($3.4 Billion @$37 per share). There is already a post that claims HMS is not the problem, so if bankruptcy is being speculated, what's causing implosion in such a short time? Yes, previous post advises private equity owes employees nothing, very true....employees get the shaft..and there is collateral damage to clients and perhaps plenty of other people who depend upon what those clients do for them. So, if there needs to be more digging into why this happened in such as short time, consider sharing more details? On another thread, a post indicated McKinsey [Consulting] was involved with Gainwell? Ok, how so, what did they do? (or not do?)
Veritas doesnt pretend to know how to run this business - thats why there's a CEO for Gainwell as well as the other companies Veritas owns. They expect the executive leaders to be able to make revenue and profit projections and build appropriate business plans to make that happen. Since the former CEO couldnt make that happen, they fired him and got a new one. Pretty simple.
Gainwell (and its predecessor companies) have never to my knowledge made money on a new Medicaid implementation...they make their money on operating the system for the states after it is implemented. If you look at the accounts they have had that are over 5 years old, they are absolutely turning a profit on those.
To me the big problem they have always had is the huge code base to be maintained SEPERATELY for each account. They failed spectacularly and repeatedly at managing it as a single code base...they dont even try any more. So each account has to have a team with the knowledge and specialties to work on any part of the system, and there isnt even a good way to share expertise. Not new problems (been that way since the EDS days), but definitely holding them back
Oh there's a rate of attrition I bet. :D
There definitely is ZERO incentive to stay.
I’m really surprised that there isn’t a mass exodus happening at Gainwell. As they near bankruptcy it will be interesting to see how they choose to spend their money. Will the paychecks continue to show up?
"Why does the Gainwell leadership continue to try and convince employees that things are so great? "
So that the company has its contracts staffed according to its own financial targets, and so that it can attempt to control the rate of employee turnover according to its own timeline.
@3lmq+1peqFLbj, because they can!
So riddle me this…
Why does the Gainwell leadership continue to try and convince employees that things are so great? They constantly tell us how great the organization is doing and how we are gaining new business etc. They are attending conferences and shows. They are “buying” fake awards. But they never tell us layoffs are coming. They never talk about layoffs after they occur. They never tell us that business is suffering. They never tell us that we are in dire straights financially. They only lie. They only deceive. They ALL are snakes in the grass. Not one of them can be trusted. They would sell any employees soul to look good. They have no remorse for kicking employees down the road and replacing them with cheaper labor.
What a pathetic company. I hope the new owner drains the swamp.
Well at least they know what they are doing. Might be a good thing for the few employees that will be left.
Not surprised at all about Cognizant.
They better hurry up. Bankruptcy isn’t far off.
Heard a rumor: Cognizant buying Gainwell
We can only hope next week is as eventful as this week was.
You were hired as an investment. You are cheaper than the ones they let go.
I was just hired this week. WTF. Now i feel like a jerk for losing half the department. Why was i hired?
Can folks please just SPECULATE on who the owner will be? It's ok to be wrong ... we won't hold you to it. Just please share your best guess, as of today. Spill some tea!
The 23rd must have been quite a day, given all the discussion on this particular thread.
I can assure you that Medicaid accounts did not just “float along” under late stage EDS/HP/HPE/DXC. But it does seem to get worse with every change of ownership.
@2kij+1peqFLbj, you do realize 2003 was 20 years ago right? Since HP bought EDS in 2008, all the old businesses went different places. Medicaid accounts floated along until Gainwell picked them up. Gainwell wanted to modernize the 40 year old systems, but the accounts had their own ideas of how it should be done. Instead of meaningful collaboration to come to an agreement, it's been kind of a mess the whole time. Lots of infighting and countless org changes. I'm sure Veritas never bargained on the dysfunction they have encountered. I am certain they can't wait to sell. Nothing will be fixed in the new company either. The whole thing has been a big disappointment overall.
“Hasn’t changed in 40 years”
Silly comment considering all the different companies from 40 years ago are now GW.
EDS was still strong up to around 2003. Can’t speak for any of the others.