2023-04-17 09:33:48 ET
- Clover Health Investments ( NASDAQ: CLOV ) reported its business transformation initiatives to accelerate the company's path to profitability.
- The move includes its intention to proceed its core plan operations to UST HealthProof’s integrated technology platform and additional corporate restructuring actions.
- The initiatives are expected to generate net annual cost savings of approximately $30 million beginning in 2024.
- Separately, the company recently conducted an independent reduction-in-force to better align its SG&A cost structure with its revenue base, the restructuring resulted in the elimination of approximately 10% of Clover’s workforce.
- In order to implement the UST HealthProof arrangement and the additional internal restructuring actions, the company expects to record a total charge of ~$7 to $9 million in 1H2023.
For further details see:
Clover Health announces transformation initiatives, eliminates 10% of staff