Healthcare Company Optum Announces SoCal Workers Layoffs

Optum, a healthcare company and subsidiary of UnitedHealth, announced during the weekend that 364 healthcare workers in Southern California will be laid off between September and January 2025, with 525 being laid off nationwide.

While in recent years the Bay Area has been synonymous with layoffs, particularly in the tech sector, Southern California has not been immune. Many film studios recently announced layoffs, as have fast food restaurants in a bid to stay alive amid the new $20 per hour wage. But the healthcare industry is also ramping up layoffs. Due in large part to the SB 525 bill raising healthcare worker minimum wages to $25 an hour by mid-2026, and the first bump in pay happening earlier this month, SoCal healthcare workers have been seeing more and more seeing pink slips.

Cue Health of San Diego recently saw a round of several hundred workers being let go. At many hospitals, workers who had fought for the $25 per hour wage now find themselves being let go because of it. And the trend only continued this month, with Optum filing a state WARN notice earlier this month letting the state know that 364 workers will be laid in the the coming months. The 525 in total being laid off follows earlier announcements this year of Optum both closing a facility in Ohio and more than 100 workers being let go in April.

“We continually review the capabilities and services we offer to meet the growing and evolving needs of our businesses and the people we serve,” said parent company UnitedHealth. “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.”

In total, the California layoffs will affect the Counties of Los Angeles, Riverside, Orange, and San Bernardino. The cities affected are Pasadena, Los Angeles, Redlands, Glendora, Montebello, Covina, Long Beach, Highland, Beaumont, Irvine, Hayward, El Segundo, and Cerritos.

Employment experts in Southern California told the Globe that they are not surprised by the layoffs, and that other healthcare positions are likely to suffer the same fate as healthcare companies struggle to stay profitable amidst the new wage change law.

“This is something we will be seeing more and more of in the coming years, and not just in SoCal,” explained Christie Tully, a Santa Ana-based headhunter and hiring specialist, to the Globe on Monday. “It’s not just the minimum wage, as there are a bunch of other factors in the healthcare industry right now. And many of those being let go, especially the nurses, will easily find new jobs. SoCal is not in terrible shape when it comes to jobs right now. But still, especially for administrators and other people usually wanted at physical locations, it will be hard.”

“As for the minimum wage. It’s not like they are doing it strictly over that. But, as we are seeing, it is the bridge too far for many places. They can deal with California regulations, clientele and all that. But the higher wages, that is hurting a lot. And we’re seeing that.”

More healthcare industry layoffs are expected to be announced soon.