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Health insurance broker GoHealth has laid off 20% of its workforce after a rough financial quarter, in which the company’s net loss increased nearly six-fold.
Financial documents indicate GoHealth logged a $37.2 million net loss in Q2. In a letter to employees that was made public on its website, CEO Vijay Kotte acknowledged that the news would be “unsettling” both for those impacted and for those who have remained on the team, saying the decision “was not made lightly.”
“It was only after an exhaustive analysis of our business needs and extensive consideration that we agreed this was the path forward to secure our long-term future and enable GoHealth to achieve its full potential,” Kotte wrote.
To address any questions or concerns from the remaining workforce, the company held an all-employee town hall meeting Thursday morning at which Kotte explained how GoHealth made the decision and what the next steps are for the organization.
He said the company is working to match impacted employees with alternative job opportunities within the organization.
WHAT’S THE IMPACT
Employees who were laid off will receive at least 60 days compensation and benefits, with potentially more severance pay based on position and tenure. They’ll retain their company-provided work-from-home equipment and be given access to career and job placement services with an eye toward helping them punch up their resumes and LinkedIn profiles.
When signed HR documents are returned, the impacted employees will have the option to keep their company-issued laptops, licensing and carrier appointments, and be released from non-compete limitations.
“Our top priority is to act with integrity and facilitate a smooth transition for impacted team members,” said Kotte.
He added the company’s focus moving forward will be on quality in all aspects of the business. Kotte said GoHealth will emerge from the incident “a leaner organization.”
“I’m confident in the resiliency and adaptability of our team,” he said.
THE LARGER TREND
GoHealth has also established supports for employees who have been retained, such as 24/7 online access to a licensed therapist through Talkspace.
“There has never been a more worthy time to be focused on improving access to healthcare in America – and with these changes, we will be best positioned to sustainably deliver on that promise,” said Kotte.