Bloomberg Axes Perks, Freezes Hiring: Staff Blindsided by Cuts
Bloomberg Employees Will Soon Pay for Part of Their Health Insurance
What Happened?
Bloomberg LP—the big financial data and news company founded by Mike Bloomberg—just told its employees that they will have to start chipping in for their health insurance. For a long time, the company covered the entire cost of health care for its workers. That’s changing now.
Source: This news was first reported by Oliver Darcy at Status (a newsletter about media and journalism). You can read the full story here (subscription required).
Why Is This a Big Deal?
Bloomberg Was Very Generous
- Most companies ask employees to pay part of their health insurance premiums (the monthly cost).
- Bloomberg paid 100% for years—no deductions from paychecks for health coverage.
- This was rare, especially for a company this big.
Employees Were Surprised
- The announcement came via an internal memo.
- Staffers said they were "unhappy and surprised."
- Many had assumed the great benefits would last forever—or at least until Mike Bloomberg (now 84) steps down or passes away.
What the Company Said
“We believe exceptional benefits are an important part of creating an environment where our people can thrive both personally and professionally, and that’s not changing… At the same time, the cost of providing healthcare keeps rising and, across the market, the way healthcare is funded has shifted. Bloomberg’s approach of not asking employees to contribute to healthcare costs lasted longer than any of our peers in the face of these rapidly changing market dynamics.”
— From the internal memo (written by a leader named Cooper)
In Plain English:
- Health care got really expensive.
- Other companies already make employees pay part of the cost.
- Bloomberg held out longer than anyone else—but now they’re joining the pack.
What This Means for Employees
| Before | After |
|---|---|
| $0 taken from paycheck for health insurance | Some money will be deducted each pay period |
| Fully company-paid premiums | Shared cost between company and employee |
| One of the best benefits in the industry | Still good, but less unique |
Important: This change applies to everyone at Bloomberg LP—not just journalists. Engineers, salespeople, analysts, support staff—everyone.
Why Now? (The Bigger Picture)
- Health care costs keep going up — faster than inflation.
- Market pressure — competitors (like Reuters, Dow Jones, tech firms) already share costs.
- Long-term planning — the company wants to keep benefits sustainable.
- Leadership transition looms — Mike Bloomberg is 84. People wonder what happens when he’s no longer around.
Step-by-Step: How This Might Roll Out
- Memo sent – Leadership explains the change.
- Details shared – HR tells employees how much they’ll pay (percent or fixed amount).
- Open enrollment – Workers pick plans (maybe with new prices).
- Paycheck deductions start – Money comes out automatically.
- Feedback loop – Employees can ask questions, raise concerns.
Key Takeaways (Callout Box)
Bloomberg LP is ending its 100%-paid health insurance policy.
Employees will now pay a portion of their premiums.
The change affects all staff—not just the newsroom.
Reason: rising costs + industry norms.
Staff reaction: surprise and frustration.
Bigger question: what happens to benefits when Mike Bloomberg exits?
Summary
Bloberg LP, long known for its ultra-generous benefits, has told employees they’ll soon share the cost of health insurance. The company says rising healthcare expenses and industry trends forced the change. Employees—many of whom viewed the free coverage as a core perk—are caught off guard. The move also fuels speculation about the company’s future once its 84-year-old founder, Mike Bloomberg, is no longer at the helm.
FAQ
Will I lose my health insurance?
No. You’ll still have coverage—Bloomberg will still pay most of it. You’ll just contribute a small part from your paycheck.
How much will I have to pay?
Not announced yet. The memo didn’t give exact numbers. Details will come during open enrollment or from HR.
Does this affect only journalists?
No. The memo says it impacts everyone in the organization—engineers, sales, ops, everyone.
Why didn’t they do this sooner?
They held out longer than any peer. Most companies made this shift years ago. Bloomberg stayed fully covered as long as it could.
Is this because Mike Bloomberg might die soon?
Not directly—but it’s on people’s minds. The founder is 84. Employees wonder if benefits will shrink further after he’s gone. This change feels like a first step.
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