WPS Health Solutions plans to eliminate 313 positions in Monona and Madison, the company said in a letter filed with the state on Thursday.
The layoffs will affect 303 employees at the WPS headquarters on West Broadway in Monona, and 10 employees at its facility on Tradewinds Parkway in Madison.
WPS, an insurance company that is Monona’s largest private-sector employer, intends to reduce its government services division workforce by a total of 342, according to a Friday press release.
“The reduction is in response to the upcoming conclusion of a federal contract that WPS has supported for many years,” the press release said. “With the work in its final transition-out phase, the company is realigning resources to reflect the changing demands.”
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The layoffs, which are expected to begin Jan. 21, “will be implemented over the coming months,” the release said, “with all impacted employees having received advance notice.”
“While this action was foreseen and planned as part of the natural dynamics of federal contract work, we recognize the impacts this will have on our dedicated team members,” WPS Health Solutions President and CEO Wendy Perkins said in a statement. “These employees have made valuable contributions to WPS, and we are committed to helping them navigate this difficult time.”
WPS is a not-for-profit health insurer in Wisconsin. The company also provides administrative services for the U.S. government, serving members of the military and their families through Tricare and managing Medicare Part A and Part B for seniors in multiple states.
WPS currently has 2,067 employees in the United States, including 739 full-time staff in Wisconsin, a company spokesperson said. Of those, 242 work onsite in Monona and Madison. The spokesperson did provide clarification on the discrepancy between the number of onsite workers in Monona and Madison and the number of layoffs planned at those locations.
The company had about 3,600 employees nationally in early 2021, with 550 working in Monona alone.
With the federal contract coming to an end, WPS is “focusing on strengthening our core business and exploring new opportunities to expand our services,” Perkins said.
Neil Stechschulte, Monona’s city administrator, noted in an email that WPS’ business model — and the company’s need for a local workforce — relies on competing for contracts, including federal ones.
“While we certainly understand the reasons for the reduction of their workforce, we are hopeful that this is a temporary measure and that they will be able to return to full strength sometime soon,” Stechschulte said.
WPS has been consolidating its facilities and renovating its main corporate office as many employees have been working remotely since the COVID-19 pandemic, a spokesperson said this summer.
One City Schools purchased a former WPS office building on the Monona campus in 2021 to convert it into a K-12 charter school. And a $30 million golf entertainment complex proposed this year would replace five buildings at the western end of the WPS campus and in a neighboring office park.
“We look forward to continuing our relationship with WPS’ leadership to retain and grow their investment and their workforce, especially as they work to reimagine their campus here in Monona,” Stechschulte said.
As of this summer, WPS expected more of its Monona employees to work onsite once the building renovation there was complete. The company did not say Friday whether the renovation was finished or if more employees had returned to the office.
