Thread regarding Molina Healthcare Inc. layoffs

1. Yes, there was an algorithm to streamline processes and positions set by the consultants. However, within that fixed number sometimes team/department leadership had the power to decide who gets cut. So say there are nine of the same IT positions and management is told to reduce to three. Management decides who to keep and who gets cut.

** This is true. Didn't make sense on Thursday when staff was let go in depts that had openings before the freeze. Then when Supervisors in those depts were demoted, it clicked. A space was needed for them if those Sups choose to stay instead of taking the severance. Managers didn't have a say in the decision as it was happening, but they did make a recommendation when this started. Sups definitely did not have any input since they were all on the chopping block.

1. On Thursday, the first September round happened. Today (Friday), some leadership will either get cut or be offered demotion.

** True. Saw it in NM. Our layoffs happened on Thursday except for the mgmt that were given this choice. Staff will be notified on Monday. Let's see if your new mgmt is any better. You may have been better off before.

This is the best post on the site till date. It makes sense and yes more cleanup is coming in Sept end. Our team had a meeting (at MHC) with Sr Leadership today on restructuring and new assignments. We were told that Managers decided who was staying and who would go. They did a ranking of employees and Supervisors on their team and based off that ranking people were taken off to meet the numbers assigned to that Health Plan / Department / team. So much for saying Managers didn't have a say. Funny thing is that Manage's Manager also did the same exercise for their direct reports. So in many instances Managers and their direct reports were all laid off together.

I too am in HQ and don't disagree with #9, OP. I do think it is more of a phased process that's like a slow death. New CEO arrives in October. Finance will try to push as many negative things into 2017 to make it a bloodbath, with Molina losing hundreds of millions of dollars. New CEO will get runway to replace the remaining executives from the old regime. By first quarter of 2018, we'll see signs of a turnaround, for which the new CEO and his team will take all credit.

At that point Molina will get a new corporate development executive, who will actively shop around for the best buyer. By end of 2018 there'll be an announcement of some type of definitive agreement reached to sell Molina to one of the other big plans, probably Aetna or Humana.

There will be a slow movement toward merger and integration, and likely the next big round of cuts will be in 2019, when all dupicative administrative services and corporate MHI functions are liquidated in the Long Beach HQ.

So yes, those of us in HQ will be gone, it will just take more than six months.

Sounds plausible.

3 is not a rumor. The order is 1. layoffs 2. demotions 3. promotions

A Core Ops person who survived yesterday WTF today is another day.

Many of these guesses make sense to me. Especially the part about acquisition. At the California plan, it looks like our provider services/network team was really decimated. With Joe Whites stated focus on more efficient provider networks and contracting, the only way to gain that will be 1) get acquired or 2) outsource provider relations to someone like a consultancy. However not sure whether there even are consultants who do this kind of work so getting acquired is looking more and more likely...