El Segundo-based 24Hr Homecare is cutting 738 caregiver jobs across California.

The company filed a Worker Adjustment and Retraining Notification (WARN) Act notice with the state Employment Development Department on Aug. 31, the Daily Breeze reported. Layoffs are set to begin Tuesday, Sept. 15.

Chelsea Pyrzenski, 24Hr Homecare's head of human resources, wrote in the filing that the cuts stem from the unexpected end of a material third-party service arrangement and the resulting lack of work. The affected caregivers work under contracts with three managed Medi-Cal health plans: Health Net, CalViva Health and Community Health Plan of Imperial Valley.

The trigger, according to Home Health Care News, is Health Net's decision to discontinue its Personal Care and Homemaker Services (PCHS) program, an optional benefit under its Medi-Cal managed care plans. That change takes effect Jan. 1, 2027. Health Net confirmed to the trade outlet that it will extend provider contracts through Dec. 31, citing changing market conditions and talks with the California Department of Health Care Services.

Health Net is a unit of St. Louis-based Centene Corp. and serves 3 million members statewide.

The Daily Breeze reported that the broader driver behind the benefit cuts is the One Big Beautiful Bill Act, signed into law last summer by President Donald Trump. That law reduces Medicaid funding by nearly $1 trillion over the next decade.

A company spokesperson said in a statement to the Southern California News Group that 24Hr Homecare is working with Health Net, state health officials and other stakeholders to support continuity of care for affected members and their families.

24Hr Homecare provides in-home support to people with disabilities, veterans and Medi-Cal members, including help with dressing, grooming, meal preparation and laundry. TEAM Services Group, a San Diego-based home care company employing 100,000 caregivers nationwide, acquired 24Hr Homecare in 2021. New York-based private equity firm General Atlantic then bought TEAM in a deal reported at $3 billion, including debt. That acquisition closed about five months before the layoff announcement.

A law firm, Strauss Borrelli PLLC, said Tuesday, Sept. 1, that it is investigating whether 24Hr Homecare violated the federal WARN Act by failing to give workers 60 days' notice before the mass layoff. The WARN Act requires 60 days' written notice from employers with 100 or more workers. No lawsuit has been filed.

Health Net's contract extensions with providers run through Dec. 31.