UnitedHealth Group’s Optum Health division will lay off 524 employees in California and remote locations, according to a report by the state's Employee Development Department.
The affected employees include physicians, physician assistants, registered nurses, licensed practical nurses, patient care coordinators, nurse practitioners and social workers, according to the company's Worker Adjustment and Retraining Notification Act notice obtained by Modern Healthcare. The layoffs will occur in eight waves from mid-September through January 2025, according to the notice filed July 18.
Related: UnitedHealth increases projected cost of Change Healthcare hack
The majority of the layoffs are linked to permanent department closures across 15 locations. The largest number of layoffs are among employees at the company's office in Cerritos, California, according to the report. None of the affected employees are represented by a union, according to the WARN notice.
"We continually review the capabilities and services we offer to meet the growing and evolving needs of our businesses and the people we serve. As always, we will support affected team members with job placement resources and seek to deploy them where possible to any open roles within the company," a UnitedHealth Group spokesperson said in a statement Thursday. UnitedHealth employs about 20,100 individuals in California and has 10,000 job openings nationwide, the spokesperson added.
On its second-quarter earnings call last week, UnitedHealth reported a 6.5% increase in revenue to $98.9 billion, compared with the same period last year. It also saw net earnings drop 23% year over year to $4.2 billion. Its Optum division recorded an 11.7% jump in revenue to $62.9 billion, compared with the year-ago quarter.
Reports have been circulating on social media sites over the past week that Optum conducted its most recent round of layoffs following the earnings call July 16. Employees at Optum’s Landmark Health division have shared their layoffs on LinkedIn. UnitedHealth acquired the in-home medical care provider in 2021.
These layoffs follow a wave of job cuts the healthcare conglomerate has been taking at Optum, which includes provider, pharmacy and technology services.
Optum is in the process of laying off 129 employees in Toledo, Ohio, and remote locations, which will be completed by Sept. 6, according to a notice filed in May with the state's Job and Family Services Department.
In April, Optum laid off 114 individuals in Tennessee and remote locations working in its naviHealth division. UnitedHealth Group acquired the software company in 2020.
UnitedHealth is facing higher-than-expected costs related to the February cyberattack on its Change Healthcare unit, which is operated by Optum. Executives told financial analysts last week they now expect the breach could cost up to $2.45 billion this year.
