UnitedHealthcare Offers Voluntary Buyouts, Possible Layoffs If Targets Not Met: CNBC

UnitedHealthcare, the insurance arm of UnitedHealth Group UNH, is reportedly offering some employees in its benefits operations unit a chance to take a buyout if they resign by March 3.

In January, UnitedHealth announced that Tim Noel will be CEO of the UnitedHealthcare after the segment's former chief executive was murdered in New York last month.

Previous CEO Brian Thompson’s death and the possible motive behind his killing have drawn scrutiny to the health insurance sector, including reports of high claim denial rates by companies like UnitedHealth Group.

Workers were told about the buyouts in a brief 10-minute meeting on Monday.

Employees who don't accept the offer will stay in their current role or move to a similar position. However, if not enough workers take the buyout, layoffs will follow, the sources told CNBC, citing an internal company site.

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The company did not disclose how many employees were offered buyouts under the Voluntary Resignation Separation Program. The CNBC report said that the benefits operations unit handles customer service, claims, enrollment, and insurance benefits.

"This voluntary option is part of our ongoing efforts to ensure our team is best positioned to meet the evolving needs of the people and customers we are honored to serve," a UnitedHealth spokesperson told CNBC. "We continue to grow our workforce with more than 3,200 positions currently available on UnitedHealth Group's careers site."

The company expects employees’ last day to be no earlier than May 1, according to an internal memo seen by CNBC. Some who take buyouts may need to stay longer, but no one will be required to work past Nov. 13.

Severance packages will be based on years of service and salary level and will take effect on the termination date. The memo also noted that if there are future layoffs, the benefits may not be as generous as those in the buyout program.

UnitedHealthcare reported Q4 revenue of $74.1 billion, up from $70.8 billion a year ago. The number of consumers served with domestic commercial benefits grew by 2.4 million in 2024.

Price Action: UNH stock is up 0.25% at $501.99 at last check Wednesday.

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