Genesis Healthcare layoffs, on the record
Every job cut, severance charge and restructuring Genesis Healthcare reported in its annual reports, 2018 to 2020, quoted from the filings. Headcount went from approximately 61,300 to approximately 44,000.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2018 | approximately 61,300 | December 31, 2018 |
| 10-K for 2019 | approximately 55,000 | December 31, 2019 |
| 10-K for 2020 | approximately 44,000 | December 31, 2020 |
Job cuts, severance and restructuring
Our summaryCompany exited the operations of 55 non-strategic centers during 2018 as part of responding to business pressures.
Word for word“In response to these issues, we entered into the Restructuring Transactions, exited the operations of 55 non-strategic centers and restructured/terminated certain leases during the year ended December 31, 2018.” 10-K for 2018
Our summaryCompany reported severance and restructuring costs in its Adjusted EBITDAR reconciliation for 2018, with 2017 comparison.
Word for word“Severance and restructuring 9,024 5,043 Losses of newly acquired, constructed, or divested businesses 5,148 20,544 Stock-based compensation 8,820 9,621 Regulatory defense related costs (1) 609 1,798 Other non-recurring costs (2) 12,721 3,764 Adjusted EBITDAR $ 603,934 $ 632,381 The following table provides a reconciliation of the non-GAAP performance measurement EBITDA and Adjusted EBITDA from net loss attributable to Genesis Healthcare, Inc., the most directly comparable financial measure presented in accordance with GAAP (in thousands): Year ended December 31, 2018 2017 Net loss attributable to Genesis Healthcare, Inc. $ (235,231) $ (578,982) Adjustments to compute EBITDA: Loss from discontinued operations, net of taxes — 32 Net loss attributable to noncontrolling interests (137,186) (380,222) Depreciation and amortization expense 220,896 255,786 Interest expense 463,738 499,382 Income tax benefit (2,423) (10,427) EBITDA 309,794 (214,431) Adjustments to compute Adjusted EBITDA: Loss (gain) on early extinguishment of debt 391 (6,566) Other (income) loss (12,920) 8,473 Transaction costs 31,953 14,325 Customer receivership and other related charges — 90,864 Long-lived asset impairments 104,997 191,375 Goodwill and identifiable intangible asset impairments 3,538 360,046 Severance and restructuring 9,024 5,043” 10-K for 2018
Our summaryCompany completed Restructuring Transactions with Welltower, MidCap and other lenders and landlords to reduce fixed charges; this is a capital restructuring rather than a workforce action.
Word for word“During the quarter ended March 31, 2018, we entered into a number of agreements, amendments and new financing facilities further described below in an effort to strengthen significantly our capital structure (the Restructuring Transactions) .” 10-K for 2018
Our summaryCompany reported severance and restructuring costs excluded from Adjusted EBITDA, tied to planned reduction in force initiatives.
Word for word“Severance and restructuring. We exclude severance costs from planned reduction in force initiatives associated with restructuring activities intended to adjust our cost structure in response to changes in the business environment.” 10-K for 2019
Our summaryCompany referenced a reduction in force of employed therapists as a factor in a therapy revenue decline.
Word for word“The remaining decrease of $1.5 million is principally attributed to the net impact of amended customer pricing terms in connection with the implementation of PDPM offset by a reduction in force of employed therapist, further offset with reductions in overhead and reductions of start-up losses in our operations in China.” 10-K for 2019
Our summaryCompany exited the operations of 99 non-strategic facilities and restructured or terminated certain leases during 2019 and 2018 as part of its restructuring.
Word for word“In response to these issues, we entered into the Restructuring Transactions, exited the operations of 99 non-strategic facilities and restructured/terminated certain leases during the years ended December 31, 2019 and 2018.” 10-K for 2019
Our summaryThe company reported that its workforce shrank by about 11,000 employees during 2020, mainly because facilities were divested or moved to joint ventures and other third parties.
Word for word“Our workforce declined by approximately 11,000 employees during the year ended December 31, 2020, primarily due to the divestiture or transition of facilities to joint ventures and other third parties.” 10-K for 2020
Our summaryThe company explained that it excludes severance costs from planned reduction in force initiatives tied to restructuring when it calculates adjusted earnings measures.
Word for word“We exclude severance costs from planned reduction in force initiatives associated with restructuring activities intended to adjust our cost structure in response to changes in the business environment.” 10-K for 2020
Our summaryThe company agreed to support Welltower in selling facilities, to end its leases on 51 Welltower facilities and to hand operations to new operators in return for an $86 million payment.
Word for word“On March 2, 2021 (the Effective Date), we entered into a Transaction Agreement (together with the exhibits and schedules thereto, the Transaction Agreement) with Welltower, pursuant to which we have agreed to support Welltower in connection with the sale to third party purchasers of Welltower’s interests in certain facilities that our leases from Welltower (the Facilities), terminate the leases on 51 of its facilities leased from Welltower and transition operations to new operators (the New Operators) in return for an $86 million payment; the $86 million will be used to repay our obligations to Welltower which shall occur incrementally over time upon the transition of the Facilities.” 10-K for 2020
Genesis Healthcare has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Genesis Healthcare’s annual reports (10-K for 2020, 10-K for 2019, 10-K for 2018) and the financial data it files with the SEC, as of 2021-03-16. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.