NEWARK, NJ – UnitedHealth Group’s Optum Health division will lay off 572 employees in early 2026 and close its behavioral health services across New Jersey, according to WARN notices filed with state labor officials.
The company said all behavioral health operations in the state will cease effective November 30.
The layoffs will begin February 2 and continue through early March, affecting multiple business units under the Optum umbrella.
According to the filings, Optum Care will eliminate 390 positions, Optum Medical Care will cut 122, Optum Services will lay off 49, and Optum Select Management will release 11 employees.
An Optum spokesperson said in a statement that the company “regularly reviews its services, footprint, and staffing levels to ensure they meet the needs of the people we serve, our business, and evolving market dynamics.”
Layoffs tied to rising behavioral health costs
The move comes as UnitedHealth Group faces growing pressure from increased medical expenses linked to behavioral health utilization. Executives identified behavioral health costs as a key driver of higher spending during both second- and third-quarter earnings calls this year.
The financial strain has been felt across UnitedHealth’s Optum arm, which combines care delivery and insurance services. Analysts note that behavioral health demand has surged since the pandemic, leading to higher costs across both inpatient and outpatient care settings.
Optum’s New Jersey footprint affected
The layoffs will impact employees at multiple New Jersey offices affiliated with Optum Care, Optum Medical Care, Optum Services, and Optum Select Management. Specific reductions will occur on staggered dates throughout February and early March.
Optum, a major player in the growing “payvider” model that combines payment and care delivery, has been expanding nationally but also restructuring to control costs amid tightening margins and rising demand.
The company did not disclose whether affected employees will be offered transfers or severance but said its focus remains on “affordability and sustainability” as market conditions evolve.
Key Points
- Optum Health will lay off 572 employees in New Jersey starting February 2, 2026.
- All behavioral health services in the state will close effective November 30.
- UnitedHealth cited rising behavioral health costs as a major factor behind the cuts.
