Kaiser to Cut Nearly 2,000 Jobs - NBC 7 San Diego

Kaiser to Cut Nearly 2,000 Jobs

Second quarter profits jumped 75-percent



    Kaiser to Cut Nearly 2,000 Jobs
    This is one of the dozens of Kaiser facilities in California.

    Kaiser Permanente says it is eliminating 1,850 jobs in California as the Oakland health care giant faces a drop in subscribers and shrinking reimbursements from Medicare.

    Kaiser spokesman Marc Brown says the cuts will mainly hit housekeepers, secretaries, business office employees and pharmacy and information-management clerks -- mostly in Northern California.

    Kaiser announced the cuts Tuesday, a week after reporting a 75 percent jump in second-quarter profits to $620 million. Income from day-to-day operations, however, fell 18 percent.

    The company says it lost 36,000 subscribers in the first half of the year, leaving about 8.6 million.

    Economists say laid-off employees in other industries losing their employer-paid health insurance were a major cause of Kaiser's subscriber losses.