Clayton-based health care giant Centene is planning for some pretty big layoffs: 2,000 employees or about three percent of its total head count.
The trade publication Health Payer Specialist says termination notices will start going out next week, from October 2nd through October 5th.
Reporter Gale Scott says Centene's HR personnel have been given a 13-page set of confidential documents titled, "Supporting December Transitions."
Scott says those conducting the firings will start "by saying that they have to inform the employee that they've been terminated and it's due to the company's Value Creation Plan, which is an attempt to get expenses down. It says, unfortunately, you're not going to be a part of the Value Creation Plan."
Centene has seen a drop in the number of its Medicare members as well as impacts from the post-Covid reevaluation of federal Medicaid benefits. Many Medicaid recipients no longer qualify for state-level coverage.
The last day for those let go will be December 8th but they are expected to keep health insurance and other benefits through the end of the year.
Centene CEO Sarah London has focused on promoting remote work than on bringing employees back to in-person offices.
Clayton Mayor Michelle Harris says, while she hasn't spoken with Centene since the news broke, she isn't sure there'll be a big impact on the city.
"I think their executive team and some folks related to that, maybe HR, they're all here in Clayton. I don't know how many people that is, but it's a small fraction of what they plan to lay off," Harris tells KMOX News. "I doubt that's where they're getting their head count."
A little more than a year ago, Centene scrapped plans to build a multi-use expansion featuring an auditorium, a hotel, and apartments. The project was cancelled with just an additional office building and a parking garage built.