Health insurance giant Humana is cutting jobs in Louisville as part of a corporate realignment just two weeks after a $37 billion merger deal with Aetna collapsed.
The company confirmed in an email Wednesday that it would “phase out” positions that no longer fit with its new strategy, which centers on its Medicare Advantage business and services for seniors living with chronic conditions.
According to a source at Humana not authorized to speak about the company, job cuts that came Wednesday were directed at management-level positions. Humana spokeswoman Kate Marx would not share details about which positions were eliminated or how many employees were affected.
Marx said the company would work to place anyone laid off at a new job at Humana.
“Any Humana associate affected by this realignment of our resources is offered up to 60 days to obtain another position within the company, and severance and outplacement assistance if a new position is not secured,” she said via email. “Humana’s Louisville employment of 12,500 remains the same.”
Marx said Humana doesn’t know how many positions will ultimately be eliminated at its Louisville locations because some employees can choose to move to different roles in the company.
Humana and Aetna announced they were terminating their merger bid on Feb. 14, after a federal judge blocked the merger on anti-trust grounds, saying it would lead to higher prices and fewer choices for seniors seeking Medicare Advantage plans.
The Louisville-based company also announced that day it was pulling out of health insurance exchanges created under the Affordable Care Act, instead shifting more of its focus toward senior care.
Last month, Insider Louisville reported that the company was eliminating positions in Florida and Ohio.
The job cuts come a little more than a week after top Humana executives dumped hundreds of thousands of company shares worth nearly $74 million.