Health insurer Centene has confirmed plans to cut its workforce by 2,000.
The layoffs represent approximately three percent of its total staff.
The company is taking this cost-cutting measure amid increased competition in the government-subsidized health insurance market.
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It includes individual coverage under the Affordable Care Act (Obamacare) and Medicaid for low-income individuals.
The company reported $1 billion in profits for the second quarter and a nearly two million growth in membership.
However, Centene is streamlining its operations under the leadership of CEO Sarah M. London.
The company aims to focus more on its US health benefits offerings.
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A company spokesperson said: “We routinely assess our workforce to ensure we have the talent and expertise necessary to support our members and the evolving needs of our business.
“Our decision was not made lightly and impacts approximately 2,000 employees, just over 3% of our workforce.
“Centene will support impacted employees with severance packages and outplacement services, consistent with our standard approach.”
