Optum announces plant closing and layoffs

Photo: Courtesy UnitedHealth Group

Optum is closing a plant in Ohio, laying off 129 employees, according to a May 16 letter from Optum to the Rapid Response Program Administrator in that state.

Optum gave the mandated WARN notice, the federal Worker Adjustment and Retraining Notification Act.

Optum plans to permanently close its facility in Toledo, Ohio and has given the WARN notice to the 129 employees in Ohio or in remote locations. None of the employees are represented by a union.

The layoffs will occur in three waves, with the last day of employment for some starting on July 15 and the remaining layoffs ending on August 23.

The layoffs include 30 associate business systems analysts, 28 printers, 11 associate business operations coordinators, nine associate printers, nine business systems analysts, four printing coordinators and the rest of the 35 positions having job counts of one or two positions, according to the WARN letter.

WHY THIS MATTERS

The closing and layoffs follow a report in April that Optum is closing its telehealth business. 

During an April 18 conference call with Optum Everycare CEO Jennifer Phalen, some employees of the company's virtual care division were reportedly told that their last date would be in July.

Asked to comment, Optum said by statement, "We regularly review our products, services, staffing requirements and real estate needs to ensure they align with our evolving business to best meet the needs of our customers, and we continue to grow our workforce in Ohio. We are supporting affected team members with job placement resources and will redeploy our talent to any appropriate open roles within the company."

THE LARGER TREND

UnitedHealth Group, Optum's parent company, reported more than $1 billion in net losses during the first quarter – which included impacts from the February 21 Change Healthcare ransomware attack and subsequent payment systems outage.

Email the writer: SMorse@himss.org