Optum closes several U.S. clinics, lays off 524 in California
MINNESOTA, UNITED STATES — Optum, a subsidiary of UnitedHealth Group, announced significant layoffs and clinic closures across multiple U.S. states, including the termination of 524 employees in California.
According to regulatory documents filed on July 18, the layoffs will occur from September 16 through January 2025, affecting various clinic and administrative office locations.
Workforce reductions and clinic closures
Landmark employees, who became part of Optum in 2021, began posting on social media about a large reduction in force nationwide starting July 18. Landmark specializes in house calls and medical, behavioral, social, and palliative care for individuals with multiple chronic conditions across more than 35 states.
Optum has also announced permanent closures at 15 additional addresses in California, including urgent and primary care clinics, infusion services facilities, and medical groups. The layoffs will impact several California cities, including Hayward, Glendora, Montbello, Covina, Pasadena, Long Beach, Los Angeles, Irvine, Beaumont, Redlands, Highland, El Segundo, and Cerritos.
Notably, 64 employees will be laid off at Optum California’s corporate office in El Segundo, while another 157 employees will be affected at an office in Cerritos. Additionally, some remote employees in other states will also be impacted.
At the same time, television station KKTV reported that the firm is closing three urgent care clinics in Colorado Springs and Monument by August 1. In Florida, WFLA said that a WellMed clinic in Tampa will close by August 19.
Support for affected employees
A spokesperson for UnitedHealth Group told Becker’s that the company is continually reviewing its capabilities and services to meet the growing and evolving needs of its business and clients.
“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 spokesperson added.
Ongoing workforce reductions
Optum and its subsidiaries have conducted multiple workforce reductions over the past year. This includes layoffs at the Everett Clinic and the Polyclinic in Seattle, MedExpress Urgent Care in Morgantown, W.Va., and WellMed in San Antonio.
In August, MedExpress clinics eliminated all registered nursing positions at nearly 150 facilities.
Additionally, Optum closed its telehealth division in April and announced the closure of a Change Healthcare facility in Toledo, Ohio, in May, resulting in 129 terminations.
Optum’s global workforce and financial performance
Optum employs more than 310,000 people worldwide. Despite the layoffs, the company reported total second-quarter revenues of $62.9 billion, an 11.7% increase year over year.
The UnitedHealth spokesperson noted that the company currently has more than 20,000 job openings across the country, including many remote positions.
