Horizon Blue Cross Blue Shield of New Jersey, the largest health insurer in the state, will lay off 5% of its US workforce. According to a Worker Adjustment and Retraining Notification (WARN) filing, this includes 242 employees based in New Jersey. The layoffs are scheduled for April 26.
The company has implemented $275 million in cost reductions over the past three years. However, a spokesperson cited “unprecedented financial challenges due largely to higher medical costs and utilization across all lines of business” as the reason for the new job cuts.
Employees at both the Newark and Hopewell headquarters were notified this week about their positions being eliminated.
Thomas Wilson, spokesperson for Horizon, said in a statement: “Our current cost structure is simply not sustainable in this environment, and we have a responsibility to our customers and members to ensure the long-term financial strength of the company. We do not take workforce reductions lightly. Employees whose positions were eliminated were treated with fairness and respect and will receive a generous separation package.”
With these latest layoffs, Horizon’s workforce has been reduced by 8% over the last 13 months.
Horizon currently provides insurance coverage to 3.8 million people in New Jersey, accounting for roughly 40% of state residents.
