The Texas-based home health care provider told Connecticut officials that it will lay off 45 people at its Norwalk office as part of massive workforce cuts across multiple states.
Signify Health representatives notified the state Department of Labor about the company’s plans in a letter the state agency received Monday. The company will lay off a total of 489 people in Texas, South Dakota, New York and Connecticut.
Brad Crane, director of employee experience at Signify, told state officials the layoffs will begin on October 1. According to Crane, the majority of the layoffs (342) involve individuals working remotely.
Lynn Shepherd, vice president of strategic communications at Signify Health, confirmed the number of Connecticut employees affected by the layoffs.
“We have notified the state that we are working to reduce our workforce,” Shepard said in an email Thursday, adding that the company has not closed its Norwalk office. We encourage them to apply for open roles within the company.”
The layoffs relate to Signify Health’s announcement last month that it was discontinuing its Episode of Care services segment to focus on its fast-growing part of the business. When announcing the decision, company officials said it was due to “recent policies implemented by the Medicare and Medicaid Innovation Center” that made it unsustainable to continue operating in that market segment. .
The Center for Medicare & Medicaid Innovation was created as part of the Affordable Care Act. Its mission includes designing, implementing, and testing new healthcare payment models while addressing concerns about rising costs and quality of care.
News of the layoffs comes 18 months after Signify Health completed its $564 million public offering.
The job cuts also come as Rhode Island-based healthcare giant CVS is reportedly targeting Signify Health as a potential target. His Aetna, a health insurance giant, is part of his CVS.
luther.turmelle@hearstmediact.com
