Centene recorded $263 million in severance costs in the third quarter, primarily tied to a voluntary employee buyout program intended to reduce expenses. Total severance costs for the quarter reached $276 million. The company expects an additional $50 million to $100 million in severance costs in the fourth quarter.
The buyout program is part of a broader enterprise optimization plan as Centene faces rising medical costs and declining membership. The company’s workforce fell by nearly 6,000 employees in the third quarter, from 59,800 to 53,900.
Restructuring charges contributed to a net loss of $71 million for the quarter. Centene raised its full-year adjusted earnings forecast despite the loss. The cost-saving measures are expected to improve profit margins in 2027.