LOUISVILLE, Ky. (WDRB) – Louisville-based Humana Inc.’s “workforce optimization” initiative, which involves cutting 2% of the company’s nationwide employees, or about 800 people, will cost the company $46 million.
Humana disclosed the layoffs last week, with CEO Bruce Broussard blaming the move in part on a health insurance industry tax established by the 2010 Obamacare law that will cost the company $1.2 billion next year.
On Wednesday the company reported the $46 million accounting charge as part of its quarterly earnings. Humana didn’t detail the expenses associated with the layoffs, but severance payments are typically included in such charges.
At the same time, the company slightly raised its forecast for 2019 profits, excluding one-time items likes the $46 million in layoff expenses.
