Optum Lays Off 524 Workers in California—Closing 15 Locations. More To Come?

Photo byWikimedia Commons

Optum has laid off 524 employees in California, according to WARN Act filings submitted to the state on July 18. The layoffs affect 15 locations, including Optum Infusion Services, urgent care centers, and primary and specialty care clinics.

There will be eight waves of layoffs, starting in September and going through January. With 157 layoffs, the Landmark Health office in Cerritos, California, had the most. The majority of the employees were remote. 64 employees were laid off at Optum's headquarters office. Licensed practical nurses, medical assistants, radiography technicians, registered nurses, patient care coordinators, and nurse practitioners are among the job categories impacted. The impacted employees are not unionized.

The layoffs are a part of Optum's larger strategy change. The business is lowering the amount of patients Landmark will see and cutting back on home health care visits. On August 1, a deal with WellMed Houston will likewise end.
There are rumors that over 2,000 workers have been impacted countrywide, however this number is still unverified. There have been cuts to social work, behavioral health services, and local outreach workers in many states, raising the possibility that Landmark may be completely dissolved.

Optum’s materials indicate that the company’s at-home medical care services have become too broad. By focusing on the sickest and most medically complex patients, Optum aims to provide a greater impact.

Starting August 15, home-based visits will end in metro markets most affected by the layoffs. Support services will continue for these patients until the end of the year, and patients without a primary care physician will be recommended one.

Optum spokesperson said, “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.”

The layoffs also affect Optum’s Landmark Health division, which is leaving 18 metropolitan markets across the country. Patients in these regions will be transitioned to other UnitedHealthcare companies. Additionally, workers at OptumInsight subsidiary Episource and WellMed Medical Management have been impacted.

Optum has more than 20,000 job openings listed on the UnitedHealth Group website.

What do you think? Leave your comment below.

Subscribe to this author for more.