In a move that's sent shockwaves through Wall Street today, UnitedHealth Group announced the unexpected resignation of CEO Andrew Witty. The healthcare giant's shares plummeted nearly 18% following the May 13, 2025 announcement, as investors reacted to the sudden leadership change.
Witty, who took the helm in 2021, is officially stepping down for "personal reasons" - though the timing raises eyebrows. The company has been dealing with a perfect storm of challenges lately, including a nasty insider trading lawsuit filed just last year and growing criticism over UnitedHealthcare's aggressive claim denial practices.
Former CEO Stephen Hemsley is coming out of retirement to steady the ship - a move that seems to have done little to calm nervous investors. I think bringing back old leadership often signals a company in crisis mode rather than one with a clear succession plan.
To make matters worse, UnitedHealth has suspended its financial guidance for 2025, citing higher-than-expected medical costs across its insurance business and Optum Health division. The company is promising a return to growth in 2026, but that feels like a lifetime away in today's market.
The company was already dealing with the aftermath of the shocking December 2024 murder of UnitedHealthcare CEO Brian Thompson - a tragedy that clearly destabilized the leadership structure.
As one healthcare analyst told me, "When a company this size loses its CEO and withdraws guidance in the same announcement, it's rarely just about 'personal reasons.'" Hard to disagree with that assessment.
