UnitedHealth Group announced on May 13, 2025, the unexpected resignation of its CEO Andrew Witty, who stepped down effective immediately citing personal reasons.
The healthcare giant simultaneously suspended its full-year 2025 financial forecast due to escalating medical costs, particularly driven by higher-than-anticipated expenses among new Medicare Advantage beneficiaries.
Leadership Transition
Stephen Hemsley, who previously served as UnitedHealth’s CEO from 2006 to 2017 and has been chairman of the board since then, has returned to the CEO role while retaining his chairmanship.
Witty will remain with the company temporarily as a senior adviser to support the leadership transition.
Hemsley expressed gratitude for Witty’s leadership during a period marked by significant challenges, praising his stewardship and compassion.
Witty, who joined UnitedHealth in 2018 after a tenure as CEO of GlaxoSmithKline and became CEO in 2021, highlighted the honor of leading the company and his continued inspiration from its workforce.
Context of Challenges
Witty’s tenure was marked by unprecedented difficulties for UnitedHealth. In December 2024, the company’s UnitedHealthcare CEO Brian Thompson was tragically murdered, an event that sent shockwaves through the company and the industry.
Earlier in 2024, UnitedHealth suffered a major cyberattack on its technology division, disrupting healthcare processing systems and affecting around 200 million Americans.
Financially, the company reported its first earnings shortfall since the 2008 financial crisis in April 2025, citing unexpectedly high medical costs and unforeseen changes in its Optum division that impacted reimbursement expectations.
These developments led to the suspension of the 2025 forecast as utilization rates continued to accelerate across multiple benefit offerings.
Market Reaction and Outlook
The news of Witty’s departure and the suspension of the financial outlook caused UnitedHealth’s shares to plunge sharply, with premarket declines exceeding 10% in some reports, marking a significant drop in stock value.
The company anticipates a return to growth in 2026 despite the current headwinds.
Industry observers noted that while the suddenness of Witty’s exit was surprising, it reflected the extraordinary pressures UnitedHealth faces compared to its competitors, emphasizing the need for accountability in leadership during turbulent times.
Andrew Witty’s resignation marks a pivotal moment for UnitedHealth Group as it navigates rising medical costs, leadership upheaval, and the aftermath of high-profile crises.
With Stephen Hemsley resuming the CEO role, the company aims to stabilize operations and restore growth momentum in the coming year.
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