Cigna Group is cutting approximately 2,000 jobs, representing roughly 3% of its 73,500-person workforce, by the finish of February 2026, despite reporting better-than-expected fourth-quarter 2025 earnings of $8.08 per share. The layoffs are attributed to the company’s efforts to drive “greater efficiency across the business” amid increasing healthcare costs and regulatory pressures, according to a company spokesperson.
The decision comes as the healthcare and social assistance sector continues to demonstrate robust growth, now accounting for approximately 15% of all jobs in the United States – nearly double the share it held in 1990. This expansion has been particularly pronounced since the Covid-19 pandemic, with hiring accelerating in mid-level positions like physician assistants and nurse practitioners, according to Neale Mahoney, an economics professor at Stanford University.
While Cigna’s recent financial performance exceeded analyst expectations, its 2026 earnings guidance of $30.25 per share fell short of Wall Street projections, potentially contributing to the cost-cutting measures. The company did not disclose specific details regarding which departments or geographic regions would be most affected by the workforce reduction. Affected employees will receive severance packages and support services, though the terms of these packages have not been publicly released.
The broader healthcare industry has experienced significant job growth in recent years, driven in part by the aging U.S. Population. More than one in six Americans are now 65 or older, a demographic that generates a disproportionately large amount of healthcare spending. The influx of baby boomers turning 80 will likely double the number of Americans over 80 by 2045, further increasing demand for medical services.
Rising wealth among older Americans is also contributing to increased healthcare spending, extending beyond essential medical care to include elective procedures like cosmetic surgery and advanced dental work. Home healthcare jobs have seen a particularly sharp increase, rising by roughly 20% since January 2020, reflecting a growing preference for aging in place.
This demand has translated into higher wages for healthcare professionals. Healthcare wages grew by 1.3% in 2025, adjusted for inflation, more than double the 0.5% growth rate observed across all jobs, according to analysis by Mahoney and Caleb Brobst at Stanford. Job postings for roles such as personal care aides, physicians, and physical therapists are currently outpacing those in most other industries.
Brandon Rees, a critical care nurse in Fort Wayne, Indiana, exemplifies this trend. After graduating from nursing school in June, she secured a position earning $34 ($56) per hour, a significant increase from her previous career as a software developer. Similarly, Bryan Samuelson, a registered nurse in Portland, Oregon, now earns more than double his previous salary as a software test engineer.
However, challenges remain. The Trump Administration’s immigration policies have created obstacles for foreign healthcare workers seeking employment in the U.S., potentially exacerbating labor shortages. Recent nurses’ strikes across the country highlight the need for improved staffing levels and workplace protections. Potential cuts to Medicaid and the Affordable Care Act could negatively impact demand for healthcare services, particularly in rural areas.
Economists anticipate continued demand for healthcare workers, even if other sectors of the economy experience a slowdown. Sam Kuhn, an economist at Appcast, predicts “acute labor shortages” in healthcare, particularly as immigration levels remain restricted.
