I know employee buyouts are common and recently there have been many companies implementing this. But to offer it to practically an entire workforce is unheard of, at least as far as i know. What are some of your thoughts as to why they are going down this route and the fact that no one else knew about this other than the C-suites. Does this signal anything?
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This isn’t about the employees. It’s about helping CNC get a better headline later this year when they slash and burn.
They get to say “well, we did offer an option and let them know it was coming…should not be a surprise to the workers or the market…”
On all the AI comments - they tried to automate our team for the last 2 years. They failed to even automate one of our tasks out of the hundred that we do. I truly hope this is removing the multiple leadership positions. We have 3 managers for our 10 person team - it isn't needed.
Missiob Simplify
Restructuring the organization is essential to eliminate a diluted, "senior-heavy" hierarchy. By streamlining our org chart and standardizing titles, we remove decision-making bottlenecks, clarify true accountability, and align compensation with genuine leadership impact rather than superficial title inflation.
I think flattening the organization. Too many layers of management. I think they are restructuring around AI; the push to use AI recently is wild. There is no more use for brains or creativity.
Shrink the workforce because membership is down.
I think the reality is the government is not paying up like they used to, like with obama care, medicaid and medicare cuts, etc. so in reality centene has to resize in order to survive. They know the company needs to be about 30% - 40% smaller and this is a way they can do that.
A buyout beats being laid off. Guessing none of the C-level executives are affected.
I actually think they are positioning themselves and pivoting to AI. Doing a major restructuring of the company around AI. Lets see how it backfires. Lol
They're doing it so they can meet 3rd Quarter financials for the investors. End of story.
The negative impact to people and smooth operations doesn't matter to them as much as their stock price.
Simplify.
VPs are getting the same offers with better terms due to RSUs being awarded ahead of schedule plus all the other stuff.
In about a year they will be begging for lots of the staff that left to come back when AI blows up in their face, and the external audit results come home to roost.
That or they will sell to a buyer and golden parachute out.