Bright Health Group is laying off 68 more employees at its Bloomington headquarters as part of a larger layoff.
The move comes after 99 layoffs were announced in November, as well as a significant reduction in the overall scope of its business.
Bright describes the latest move in its letter to the Minnesota Department of Employment and Economic Development as a series of layoff rounds.
“Bright Health will be conducting additional layoffs in connection with a reduction in force initiative,” the letter states.
This latest round of employees will be affected beginning April 1.
Bright announced in October that it would cease selling individual and family health insurance coverage, which was the company’s original mission, at the beginning of 2023. The company is now concentrating on establishing a network of primary care clinics and selling Medicare Advantage health plans in a few states.
According to a January filing with the Securities and Exchange Commission, the company’s board “approved a plan to restructure its workforce and reduce expenses based on the company’s updated business model” on Nov. 4.
Pre-tax restructuring costs were expected to range between $65 million and $90 million. According to the filing, these layoffs and “restructuring activities” are expected to be “substantially completed” by the fourth quarter of 2023.
Last month, at the J.P. Morgan Healthcare Conference, the company forecasted revenue for 2023 in the range of $3.4 billion to $3.6 billion, effectively cutting its revenue in half.
Bright Health has faced a number of difficulties in the last two years, including a delisting warning from the New York Stock Exchange in December.
The company reported $5 billion in revenue for the first nine months of 2022. The company has never turned a profit and lost $804 million in the first three quarters of last year.
