Does anyone know why?
7 replies (most recent on top)
Because it makes financial sense. Humana does not need Waterside, Clocktower, AND the Tower. No one is coming back into the office, and if they are, it's only for a few days a week. I can't imagine what it costs to upkeep a huge building like that, but I never really cared for the purple marble, and the lobby always seemed so dark. The modernization and construction around the Tower must have encountered too many issues. Humana is suing the architecture firm, engineers, and construction firms from when it was built in the mid 80's. It's just such a shame though because of all the money that was poured into renovating it in the past years with the addition. Then COVID happened and Humana had to adapt and realize the Louisville workforce doesn't really want to commute downtown. Humana was a late adopter of telecommuting and I think it ended up being a real negative in that workers could work at home for an ever increasing amount of competitors, and then it got left with a swanky building that is almost empty most of the time. --And we wonder why we spend more on healthcare than any other country in the world.
Article.... https://www.wdrb.com/news/business/humana-to-vacate-iconic-headquarters-building-in-downtown-louisville/article_18a20ddc-c442-11ee-bb85-6bfcbe6b9286.html
Interesting note....new CEO hasn't disclosed where he will live, Louisville or D.C.
Since he now lives near Denver, Colorado....probably won't select Louisville.
Sell off the expensive real estate, yielding millions for the building and saving millions in upkeep and utilities. It’s a shame, but when we’re bought out, we don’t need two ivory towers.
There’s a lawsuit regarding the tower building between HUM and the architect’s company, the cost to fix is a driving reason.
Previous commenter, unfortunately I don’t think this is a move to save associates from RIFs. For Humana it is all about the bottom line and making the company look as good as it can financially to shareholders and a potential buyer.
If Humana Tower were larger I bet the decision would be different. The shift would be into Humana Tower. Many floors of Humana Tower have also not been updated like Waterside. If this prevents associates from RIFs I am all for the decision.
They are moving everything to the larger more modern space. It makes sense as half the work force is remote