The United Nations Health Group has capped staff salaries at 0-2% this year, with performance-related adjustments. Bloomberg Reported with reference to sources.
The limited increase coincides with layoff notices to an unspecified number of employees, according to the report.
The US-based group is pursuing measures to reduce operating costs, reduce the scale of its clinical network, and strengthen revenue at underperforming health plans and medical groups.
Its insurance arm is predicted to lose up to 2.8 million members.
According to the report, the division also plans to cut operating costs by nearly $1 billion this year, in part through the broader deployment of AI.
The group’s January outlook suggested earnings could fall this year for the first time since the 1980s.
Guidance for 2026 points to more than $439 billion in revenue, a 2% decline attributed to “planned restructuring across the enterprise.”
Operating income is projected to top $24 billion, with net margins expected around 3.6% compared to the 2.7% reported for 2025.
Executives have already indicated that the group will close or close about 550 clinics in its flagship health division.
UnitedHealth is looking to bounce back from last year’s sharp drop in profits.
Stephen Hemsley, long-time chairman of the board and former chief executive, returns to the senior role to lead the transformation effort in 2025.
The company is also under pressure from the Trump administration’s proposal to freeze payments for private medical benefit plans, where UnitedHealth is the largest provider with more than eight million members at the end of the year.
UnitedHealth Group has reported lower profits for 2025, citing Medicare funding cuts and costs associated with changing health care cyberattacks.
Net income attributable to common shareholders fell 16% to $12.1 billion from $14.4 billion a year earlier, and the company also cited “accelerating medical cost trends.”
For the fourth quarter, net income attributable to shareholders was $10 million, compared to $5.5 million in the same period last year.
“UnitedHealth limits salary increases to 2% during restructuring – Report” was originally developed and published by Life Insurance International, a brand owned by Global Data.
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