Humana will cut its work force by 5 percent, or 1,400 people, during 2010, the result of lower enrollment rates at the insurance company.
The company plans to reduce the impact of 2,500 job cuts by adding 1,100 jobs in medical-cost containment, pharmacy management and specialty products – the company’s growth areas.
Humana said the reductions will come from attrition, process efficiencies, outsourcing and through eliminating positions.
“This regrettable, but necessary, reduction in our work force is a direct result of Humana’s need to align the size of our company with that of our membership,” said Michael B. McCallister, Humana’s president and CEO.
People who are laid-off will have a 60-day transition period, during which time the human resource department will provide information about internal job opportunities and outplacement assistance. People who cannot get another job within the company will be offered a severance package that includes health benefits.
Humana has 10.3 million members in its health insurance departments and 7.2 million specialty-benefit members. The reduction is part of an ongoing administrative cost-saving initiative at the insurance company.