Highmark Health has announced the layoff of 182 employees, with 59 of those impacted being based in western Pennsylvania. The majority of the layoffs occurred at Highmark Inc., the health insurer subsidiary of the Pittsburgh-based organization. These cuts are part of an ongoing review of operations as the healthcare industry continues to evolve, according to a statement from the company.

The layoffs affected various sectors within the organization, including 159 positions at Highmark Inc., 13 at Highmark Health corporate, two at the Allegheny Health Network (AHN), and two at enGen, Highmark Health’s IT consultancy, which generates over $1 billion in annual revenue. Additionally, 22 employees were laid off in Highmark’s New York operations, according to a report by Buffalo Business First.

In response to the layoffs, a spokeswoman for Highmark Health explained that the cuts were a necessary step as the company adapts to changes in the healthcare market.

The company’s “Living Health” initiative is designed to improve efficiency and reduce healthcare costs using advanced technology and best practices. Highmark Health holds a unique position in the healthcare market as both an insurer and a provider through its AHN subsidiary.

“This transformation requires that we continue the work we started in 2023 to reimagine and simplify our operations to effectively and efficiently achieve the quintuple aim: better patient experience, clinician satisfaction, health equity and health outcomes, with lower costs,” the company said in a statement.

The recent layoffs follow several rounds of workforce reductions at Highmark Health since February 2023, which saw about 100 positions eliminated, followed by a reduction of approximately 600 jobs through the rest of the year.

Despite these layoffs, Highmark Health has continued to grow in other areas. The organization added 6,100 new employees in 2023, representing a 2% increase in its workforce from 2021. It is also expanding into the Philadelphia market as a Blue Cross Blue Shield employer, with CEO David Holmberg recently highlighting the company’s progress in southeastern Philadelphia during a Business Times event.

Highmark Health employs approximately 44,000 people and remains committed to its transformation efforts as it navigates the shifting landscape of the healthcare industry.