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Michigan Blue May Cut 1,000 Jobs

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A Midwestern health insurer says it will be reducing its workforce by 400 within the next 60 days and may cut 600 more jobs this year.

Blue Cross Blue Shield of Michigan, Detroit, says it has to make the cuts mainly because of state laws that limit the flexibility of its individual health insurance operation.

Michigan Blue also is announcing a salary reduction for senior executives; a reduction in the number of executives employed at the company; a freeze on salaries for non-unionized workers; a request to the United Auto Workers to delay a 3% pay increase; a 25% reduction in the company’s advertising and lobbying spending; and cuts in contributions to community programs.