Kaiser Permanente will eliminate 860 information technology positions, including possibly some in Silver Spring, following a $500 million strategic agreement with IBM Corp. and related changes.
Kaiser and IBM (NYSE: IBM) signed a seven-year agreement March 13 to work together to improve Kaiser’s IT capabilities. The deal focuses on Kaiser data centers that manage company computers and data backups to ensure they are reliable and ready for use, said Phil Fasano, chief information officer of the Oakland, Calif.-based company.
As a result, about 700 positions in Kaiser’s data centers will be eliminated. Data centers are in Silver Spring and the California cities of Corona, Napa, Walnut Creek and Irvine. There are a few small centers in regional offices too.
These jobs will be eliminated over the next six months, Fasano said.
“This is a substantial and very strategic move on behalf of the company to continue our focus as a leader in information technology,” he said credit reports. The deal has been in the works for many months, he added.
In a separate but related move, Kaiser will eliminate 160 additional positions at more than 30 locations across its eight regions as part of a cost-saving effort to realign its IT functions. Most of these employees were notified March 16. They will be eligible for severance benefits.
The 860 jobs represent about 15 percent of Kaiser’s total IT work force of more than 6,000, Fasano said.
More than 14,000 doctors and thousands of other caregivers use Kaiser’s IT systems on a daily basis and about 2.7 million members access their personal health records online.
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