So here is the reason for mass layoff...
1)Anthem Already hired around 2000 people for Legato Health Technologies (Captive for Anthem IT) and want to transfer the work to Legato.Most of these hires were working for anthem for years (as contractor at different vendor like Cognizant/Deloitte/UST global) at offshore location.So minimum training required for them.
2)Anthem already burned $1 billion for modernization of IT systems with no results by changing vendor.The main vendor was Deloitte which is too costly (compared to other vendors)and never had any significant experience in IT services.TOM Miller and Braian Beardon made money out of this deal .
3)They want all people to move to strategic location for IT team which is Atlanta/Virgina/Mason.Whoever refused to move that would be fired.Either accept transfer or leave the company(All CA employees bye bye..)
4)Age also a factor to some extent.These people are working in old technologies and nearing to retirement age and hesitated to learn new digital technologies.So keeping them no option.Also average Insurance cost is high when employee average age is high.
5)Now as Legato is taking over all the people in USA has to directly interact and work with employees at offshore.The employees who never worked with offshore directly bye bye..They will hire the contractors who were already working.worked for anthem so can easily coordinate with offshore people.