UnitedHealth Group’s shares plunged over 10% in premarket trading on Tuesday after the sudden announcement of CEO Andrew Witty’s departure and the suspension of its 2025 financial forecast. The company cited “personal reasons” for Witty’s exit but offered no further details. Stephen Hemsley, UnitedHealth’s longtime leader who previously served as CEO for over a decade, is returning to helm the company during this turbulent period.
Witty’s exit marks the latest in a series of challenges for the healthcare giant. Under his leadership, the company weathered a number of setbacks, including the tragic murder of UnitedHealthcare’s CEO Brian Thompson in December 2024. Most recently, UnitedHealth missed its earnings forecast for the first time since the 2008 financial crisis. In April, the company slashed its annual outlook, citing higher-than-expected medical costs and unforeseen changes in its Optum business that disrupted projected 2025 reimbursements. In a statement, Witty said, “Leading the people of UnitedHealth Group has been a tremendous honor as they work every day to improve the health system, and they will continue to inspire me.”
Who is Andrew Witty?
Sir Andrew Philip Witty, born on August 22, 1964. Before joining UnitedHealth Group, he served as CEO of GlaxoSmithKline (GSK) from 2008 to 2017, where he was known for pushing pharmaceutical pricing reform in low-income countries and pledging patents to collaborative drug discovery initiatives. Witty began his career as a management trainee at Glaxo UK in 1985 and went on to hold several international leadership roles, including economic adviser to the governor of Guangzhou, China. In 2003, he became President of Pharmaceuticals Europe at GSK before rising to CEO five years later. He was knighted in 2012 for his contributions to the UK pharmaceutical industry and economy. Beyond the corporate world, he has served as Chancellor of the University of Nottingham and was named an Honorary Citizen of Singapore in 2018
How did the market reacts to Andrew Witty’s exit?
The market response was swift. UnitedHealth’s stock ($UNH) has now dropped nearly 45% in the past month, wiping out around $300 billion in market value. On April 17, shares fell 22% — its worst single-day decline since 1998 — after the company lowered its full-year profit guidance. UnitedHealth also announced that it would suspend its 2025 forecast, pointing to rising medical expenses and unexpectedly high costs among new Medicare Advantage members. The company added that care activity was not only increasing but also broadening across a wider range of services than anticipated.