Layoffs and all the nonsense narratives that are spewed on this site have NOTHING to do with stock price. It's all about Medicare reimbursements, gov regulations and to a very small degree public sentiment. A huge amount of our stock is owned by massive mutual fund managers who KNOW it's significantly undervalued. The stock had a perfect storm last year of leadership instability and the gov coming after big insurance. Face it, the mu---r of Brian started a horrific downturn for the company which was roaring at the time. Then public sentiment and government tanked it.
Letting Gl 26's to GL 32's go and hiring offshore doesn't move the scale one bit. Sorry but that narrative is immature and un-insightful.
And ANYONE here who who says they want the company to fail isn't someone who has a career goal or isn't an employee at all.
Now throw all your shade and down arrows at me and call me a boomer but the truth is the truth.
15 replies (most recent on top)
@OP true
@OP Layoffs do affect the bottom line and when they need a large input of cash to report their earning report, where do you think they get it from the magic fund. If they are going to fall short on cash they layoff which gives them the boost and than of course the stock price goes up. If they continue to report losses well no one will buy their stock.
If the stock does well we get 1.5% raise. If it does horribly we get 0-1% raise. Bonuses are a joke. This place pays like government work but with next to no benefits (at least for HQ roles under L30) and lots of layoffs.
No, I do not care if the stock is up, down, or sideways.
Market was up near 3% and unh was down..... layoffs and cost cutting has everything to do with share price. Margins have to stay the same or grow. Compression is not acceptable. So if you are not growing you need to cut to buy you time and keep major investors holding and attract those interested in bottom fishing.
And it is down today. Look at the healthcare/defensive ETFs and their composites yesterday. All ships went up with the high tide of vibes. UNH was not alone.
When the stock crashed last year it was based on Wittey and company acknowledging their math was wrong and not sustainable. Very different scenario.
It was a vibes rally that business is now on track to match inflation versus be catastrophic. Meeting with leaders at OI and OH this week and they are still forecasting billions less in spend on Optum services this year and are cutting accordingly.
Hope this place fails. Shove Optumism and your elevator decals and cafeteria posters up your posterior, Optum.
Signed,
1% 401k Cut Enjoyer
@c5 nope. Not close for price. It's Medicare reimbursements. The proof is right there... Everyone hates UHG, yet the stock gained 26 bucks due to reimbursements, even with all the hatred.
Still 50% of the ATH. Crazy work from our leaders.
The stock could raise $10,000 and there will still be just as many layoffs and positions moved offshore
The loosening of star ratings this year and increased reimbursement rates next will add billions in revenue for Optum/UHG. This directly impacts layoffs, the company does not have to be as proactive nor aggressive.
@OP I'd put public sentiment at the top of the list, it's the bigger factor by far.
No one working at Optum should want the company to fail. This company pays their workers’ bills and funds their lifestyles. The stock price surged due to announcement about Part C reimbursement.
What? The stock rose NOT on company fundamentals but on government reimbursement. NOTHING to do with the company. The ONLY THING keeping this stock afloat is its placement on the DJIA index which gives it a false floor.
@OP Well stated. I have a feeling that the people that come here to wish the company fails aren't really employees or they are ex-employees who can't let go and want to throw the shade you refer to.
@OP Get's it 100% No truer words.