UnitedHealthcare, the largest private health insurer in the US, is offering buyouts to certain employees in its benefits operations unit as part of a cost-cutting measure. The move comes after a tumultuous year for the company, marked by a fatal shooting of its CEO, high-profile cyberattack, and rising medical costs.
The buyout offers are aimed at meeting a resignation quota, with employees who don’t accept the offer facing layoffs. Those who take the buyouts will receive severance packages that depend on their years of service and salary grade. The company expects to reduce staff in the benefits operations unit if it doesn’t meet its goal.
UnitedHealthcare’s CEO Andrew Witty has touted “digital adoption” as a key driver of cost savings, which includes the use of artificial intelligence. However, workers are shocked by the buyout offers, especially given the company’s reported revenue growth and ability to invest in digital modernization.
The buyouts follow recent high-profile setbacks for UnitedHealth Group, including a cyberattack that compromised protected health information of 190 million people and the killing of its insurance unit CEO Brian Thompson. The company has also faced renewed calls for reform amid growing public anger over healthcare costs.
Shares of UnitedHealth Group have risen 2% despite the buyout offer, sparking questions about the company’s priorities and ability to manage its workforce effectively.
Source: https://www.cnbc.com/2025/02/19/unitedhealthcare-offers-buyouts-could-pursue-layoffs.html