Clover Health announces transformation initiatives, eliminates 10% of staff

Clover Health Investments announced business transformation initiatives to accelerate the company’s path to profitability, including an agreement to move its core plan operations to UST HealthProof’s integrated technology platform and additional corporate restructuring actions. These initiatives are expected to generate net annual cost savings of approximately $30 million beginning in 2024. In addition to the UST HealthProof partnership, Clover also announced it recently conducted an independent reduction-in-force to better align its SG&A cost structure with its revenue base. This restructuring resulted in the elimination of approximately 10% of Clover’s workforce. The company anticipates that it will continue to deliver additional efficiencies in future periods via continued focus on streamlining operations, improving its technology platform and continuing to pursue a disciplined growth strategy focused on its core markets. The company expects to record a total charge of approximately $7 to $9 million in 1H2023 to implement the UST HealthProof arrangement and the additional internal restructuring actions.