Blue Cross & Blue Shield Rhode Island to lay off 80 employees

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PROVIDENCE, Rhode Island — Blue Cross & Blue Shield of Rhode Island has announced that it plans to lay off 80 employees.

Spokeswoman Stacy Paterno says about 130 company employees will shift to become employees of Dell Inc. over the next 18 months. Eighty employees will be terminated with benefits packages after the transition period.

Dell has provided information technology support to Blue Cross for almost a decade and will take on a much larger role in the nonprofit organization starting in January.

Executive Vice President and Chief Financial Officer Michael Hudson tells The Providence Journal that expanding Dell's role at Blue Cross is projected to save the company $100 million during the new seven-year-contract.

The company employed about 950 people in the state as of October.

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