Centene is moving to shrink its 61,000-person workforce after a steep drop in plan enrolment
Centene Corp. will extend buyout offers to most of its employees in an effort to cut costs after enrollment in its health insurance plans fell steeply over the past year, according to a company spokesperson cited by Bloomberg News.
The St. Louis-based insurer employed 61,000 people in the first quarter, the company said. The spokesperson did not specify how far Centene intends to shrink its headcount, but said layoffs could follow if the company fails to reach its target through voluntary departures, Bloomberg reported.
Centene shares fell 4.2% in early-afternoon trading in New York on Monday after the announcement, extending earlier losses.
The company is forecasting 2026 revenue of about $189.5 billion at the midpoint, a decline of roughly 3% from 2025. Its stock collapsed last year after Centene pulled its outlook, but has since recovered to gain 58% in 2026 through Friday's close. That compares with an 8.6% gain in the S&P 500 Index over the same period.
The insurer is bracing for a further squeeze in the years ahead. Congress last year cut more than $900 billion from Medicaid over a decade, with work requirements set to take effect next year. About 10 million people are expected to lose insurance coverage by 2034 under President Donald Trump's signature budget law.
Centene's total membership declined 6% year-over-year in the first quarter, to 26.3 million. The company concentrates on government health programs, including Medicaid for low-income Americans, Medicare for older people and Affordable Care Act marketplace plans.
The steepest decline came in its ACA business, where the insurer shed about 2 million members this year after Congress allowed pandemic-era subsidies that had lowered the cost of those plans to expire.
"When our membership shifts, we need to shift our organization accordingly," Chief Executive Officer Sarah London said in a message to staff on Monday that was viewed by Bloomberg News.
