Unh stock is getting crushed right before earnings. Layoffs are going to skyrocket even more here. Brutal
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20% haircut on the stock. And Hemsley already mentioned the rate in his little email. They are in shock. This is bad for future potential cuts. Cost reductions are coming even harder imo.
Earnings look bad. The CFO stating Optum is taking a huge hit of $4 billion this year.
Guessing we see emergency extra helping of layoffs before next report.
A lot of folks are scrambling to rewrite scripts and PR that talk about "return to growth in 2027" before earnings
Would be hilarious if any of them were RIFd last week!
@ar so if for 2027, when will those layoffs take effect? Next year?
@aq yeah. The layoffs we had so far were for the much larger reimbursement increase we had for 2026. Buckle up, or hit eject, cause the layoffs need to dwarf 2025s and FAST.
Isn’t this for 2027?
The rate is just a "proposal", so let's see what actually happens.
It was absolutely not expected to be that low. It was 4% this year. Wall St didnt price this in so neither did leadership. Maybe it gets bumped up a but in April for the official rate
Pretty sure that was already somewhat priced into the layoffs. They'll do layoffs either way, so it doesn't really matter.
Gonna be several gigantic RIFs before RRP. Optum and MA peers will not exist in recognizable form this time next year.
I'd say a roughly 99.9% chance UHG leadership knew this was coming.