Molina Healthcare said on Thursday that it will reduce its real estate footprint by two-thirds and make remote work permanent, both of which, according to executives, would result in significant cost savings.
The COVID-19 outbreak led businesses to close, forcing staff to work from home, and upsetting regular work schedules. Molina, a Fortune 500 firm and one of the biggest insurers in the country, is the latest corporation to opt to go entirely remote.
“We intend to move permanently to a remote work environment, a model we have been working under successfully for nearly two years.”Joe Zubretsky, CEO, Molina Healthcare
According to Molina’s most recent annual filing with the U.S. Securities and Exchange Commission, the company still has offices in New York City and Long Beach, California, where its headquarters are located.
According to the filing, the health insurer hired around 14,000 individuals as of December 31. In 19 states, Molina offers insurance to 5.1 million people.
“We own and lease certain real properties to support the business operations of our reportable segments,” as stated in the most recent annual filing.
Molina said on Wednesday that second-quarter net income rose 34% to $248 million on greater revenue of $8 billion. Gains in membership in important segments like Medicaid and Medicare, as well as the benefits of recent acquisitions, were responsible for the revenue rise.
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