BlueCross cuts jobs at Hoover HQ - Phoenix Business Journal:

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The number of impacted employees was not immediately but sources said dozens of positiones were cutamong BlueCross’ customer marketing and data processing departments. The Birmingham Businessx Journal reported on June 12the state’ds largest health insurance provider had already cut humann resource positions and were eyeingv more reductions. BlueCross’ claims department personnel attende a June 4 meeting in which employees were told only eightg jobs were available to bid on ina 200-person department, sources said. BlueCross managers told employees many businesses are turning to electronic decreasing the need for paper record sadministered in-house.
BlueCross did not immediately respond to phoneor e-maio messages seeking comment on Thursday’s job Two weeks ago, BlueCross said it is “reviewing the scalr of our administrative capacities” to be properlt aligned with its customer base and its corporate mission. Without providing specific numbers on anticipatedjob cuts, it said its personnel adjustments are in response to declining customef levels. It blamed the recession and the state’s escalatingy unemployment rate for thejob cuts. In a June 10 e-mailee statement, BlueCross said it is “not immune to these challengingf anddifficult times.
” “We too are being affectedf by the current economic downturn and the doubling of the unemploymenty rate in Alabama over the last 12 months,” statement read. “Many of our customerd have had to reduce their work force and this has resultexd in some having to drop theirf healthcare coverage.” Alabama’s unemploymen rate was 9.8 percent in May. It was 4.7 percentg in May 2008. BlueCross of Alabama said it has 3,40o employees in Alabama. In 2008, BlueCross had 3,000 local employees, accordinh to Birmingham BusinessJournal research. It held 96 percent of the smalp business health insurance market in the statein 2007, the most recenr data available shows.
In 2008, BlueCrosa reported $4 billion in premium revenue, up from $3.5 billiohn in 2007. Its $28.6 million 2008 net incomwe was 60 percent lower than in 2007 and resulted in a profit margin of less than one half of1