Rhode Island news
Blue Cross trims its work force, cuts positions
01:00 AM EST on Thursday, November 13, 2008
Blue Cross & Blue Shield of Rhode Island said yesterday that it has laid off 41 people and cut 33 vacant positions as it deals with current economic conditions.
“The decision to cut positions and lay off some of our employees saddens me greatly,” said James E. Purcell, president and chief executive officer at Blue Cross, “but in light of the current economic conditions … it was necessary for us to reduce our operating expenses.”
Blue Cross will take a restructuring charge this year ranging from $1.5 million to $2 million related to the job cuts.
The company expects to save more than $8 million next year from expense reductions, including the job cuts, according to Chris Medici, a Blue Cross spokesman.
“It is just one part of a broader set of budget reductions,” Medici told The Journal. “Blue Cross is a financially stable company.”
The layoffs come a little more than a year after a similar cutback at Blue Cross.
In September of last year, Blue Cross laid off 39 employees and cut several programs to trim expenses.
Like those layoffs, yesterday’s cuts occurred in virtually all departments. Only the customer-service department was unaffected by the earlier layoffs.
Blue Cross is a state-chartered, nonprofit health-insurance company. With about 670,000 members, it is the dominant carrier in Rhode Island. It employs more than 1,000 people.
The remaining employees eventually will move into a new headquarters, under construction in Providence, which is expected to cost $114 million. Blue Cross offices now spread around the city will be consolidated in the new building in Capital Center.
“Our plans have not changed with regards to that building,” Medici said. “It will enable us to reduce our operating expenses and increase our efficiency.”
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