GoHealth lays off 20% of its workforce after a poor second quarter

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Health insurance broker GoHealth laid off 20% of its workforce after a difficult financial quarter, in which the company’s net loss increased nearly sixfold.

Financial documents show GoHealth posted a net loss of $37.2 million in the second quarter. In a letter to employees which was made public on his website, CEO Vijay Kotte acknowledged that the news would be “disturbing” both for those affected and for those who remained on the team, saying the decision “n was not taken lightly”.

“It was only after an exhaustive analysis of our business needs and a thorough review that we agreed that this was the way forward to secure our long-term future and allow GoHealth to reach its full potential,” Kotte wrote.

To address any questions or concerns from the remaining workforce, the company held a town hall meeting for all employees on Thursday morning during 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 affected employees with alternative employment opportunities within the organization.

WHAT IS THE IMPACT

Employees who have been terminated will receive at least 60 days of pay and benefits, with potentially more severance pay depending on position and seniority. They will retain their company-provided work-from-home equipment and will have access to career and placement services to help them polish their CVs and LinkedIn profiles.

When signed HR documents are returned, affected employees will have the option to keep their laptops, licenses and appointments with the carrier, and be released from non-compete limitations.

“Our top priority is to act with integrity and facilitate a smooth transition for affected team members,” Kotte said.

He added that the company will focus on quality in all aspects of the business going forward. Kotte said GoHealth will emerge from the incident “a leaner organization.”

“I am confident in the resilience and adaptability of our team,” he said.

THE GREAT TREND

GoHealth has also implemented supports for employees who have been retained, such as 24/7 online access to a licensed therapist via Talkspace.

“There has never been a more worthy time to focus on improving access to healthcare in America – and with these changes, we will be in the best position to sustainably deliver on that promise,” Kotte said. .

Twitter: @JELagasse
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