Kaiser Planning More Lay Offs

On Monday, Kaiser Permanente  announced there would be more lays offs in the health care giants’ future. A total of  860 workers from the  data and information technology centers will soon have to find new jobs in an already troubled economy.  Kaiser employs nearly 10,000 people in the Sacramento area and has a clinic in Rancho Cordova.

Many of the cut jobs are connected with a $500 million deal between Kaiser and IBM which will allow Kaiser to transfer much of its data center operations to the technology company. This progression could take up to 7 years and will affect about 700 California employees. At least 40% will have the opportunity to be re-hired by IBM.

“This step is necessary to enable us to operate as efficiently as possible during these extraordinary times,” said Phil Fasano, Kaiser Permanente’s chief spokesman. “Making decisions like this are never easy.”

Kaiser has recently promoted measures to cut costs to balance decreasing membership including delaying construction projects like the hospital in Folsom, the timeline of which is being stretched out for 8 years. There are also plans to cut an unspecified number of full time employees, none of which will be clinical positions.

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Posted by Michelle Ventress on Mar 18 2009. Filed under News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.