L.A. Care Health Plan announced 225 layoffs in 2026, affecting 3% of its 7,500-person workforce. The company cited 3% of workforce. federal and state medi-cal budget reductions forced organizational restructuring. The cuts are part of a broader pattern of workforce reductions across the Healthcare / Insurance sector in 2026, where companies are restructuring operations in response to changing market conditions, AI adoption, and margin pressure.