Hospital Workforce Reductions in 2025

A number of hospitals and health systems are reducing their workforces or jobs amid financial and operational challenges.

Below are workforce reduction efforts or job eliminations announced in 2025.

Editor’s Note: This webpage was created Jan. 22 and updated on Aug. 29.

August

1. Children’s Hospital Los Angeles plans to reduce its workforce as part of a strategic realignment affecting about 439 positions, or 5.8% of its workforce. About 253 employees will be laid off, including roles across management, administrative services and clinical care, effective Oct. 28. Another 186 employees will be able to transfer into newly restructured roles.

1. Willows, Calif.-based Glenn Medical Center filed a WARN notice for 225 employees following closure plans.The 225 layoffs include 150 full- and part-time employees and 75 per diem staff. The 25-bed hospital’s Oct. 21 closure – announced after CMS’ decision to revoke its critical access hospital designation – is “expected to be permanent,” the WARN notice said.

1. A back-office services restructuring of 750 employees at Roseville,Calif.-based Adventist Health will affect about 300 corporate roles. The health system launched multiple financial sustainability initiatives, such as outsourcing some business functions and vendor partners taking over financial, human resources, talent acquisition, supply chain IT and accounts payable services. Some of the affected employees will transition into new roles at Adventist health or with vendor partners.

1. Atlanta-based Emory healthcare cut an unspecified number of financial services and revenue cycle positions. A spokesperson told Becker’s the reduction affects less than 1% of the system’s overall workforce based in the Atlanta area. Some other workers in the same department are being shifted to other jobs.

1. St. Cloud, Minn.-based CentraCare is laying off 535 employees systemwide. the layoffs affect 44 locations and represent nearly 5% of the health system’s workforce. Eliminated positions include administrative and support positions, and also patient care roles.

1. Lewes, Del.-based Beebe Healthcare is cutting 22 nonclinical jobs. A spokesperson told Becker’s The decision was made after the health system tired several other avenues for cost savings.

1. The Los Angeles-based University of Southern California and its health system,Keck medicine of USC,shared plans to lay off 89 employees. Keck Medicine of USC will lay off 78 workers; the USC Norris Thorough Cancer Center will lay off 11.

Hospital Layoffs Continue Across the US: A Running List (Updated july 5, 2024)

Hospitals and health systems across the U.S. continue to face financial pressures, leading to workforce reductions. Here’s a running list of layoff announcements, compiled from Becker’s Hospital Review and other sources, updated as of July 5, 2024:

January

1. Rochester, N.Y.-based Rochester Regional Health announced plans to cut approximately 380 positions, or 2.3% of its workforce.

February

1. Nashville, Tenn.-based HCA Healthcare shared it would be cutting jobs as part of cost-cutting measures. The exact number of positions eliminated was not disclosed.
2. St. Louis-based BJC HealthCare laid off 139 employees, primarily in non-direct patient care roles.

March

1. Chicago-based CommonSpirit Health announced plans to lay off 2,000 employees, or roughly 2% of its workforce.
2. Philadelphia-based Trinity Health announced it would lay off 1,200 employees, citing financial challenges.
3. Charlotte, N.C.-based Atrium Health announced plans to lay off 1,000 employees.

April

1. Boston-based Mass general Brigham announced plans to lay off 800 employees.
2. New Hyde Park, N.Y.-based Northwell Health announced it would lay off 800 employees.
3. Detroit-based Henry Ford Health announced plans to lay off 300 employees.

May

1. Renton, Wash.-based Providence announced it would lay off hundreds of employees.
2. Oakland, Calif.-based Kaiser Permanente announced plans to lay off 742 employees.
3. roseville, Calif.-based Sutter Health announced it would lay off an undisclosed number of employees, a number that has been

1. Memphis, Tenn.-based Methodist Le Bonheur Healthcare shared plans to cut about 161 jobs – roughly 1% of its 12,000-person workforce – as part of the institution’s realignment plan. The health system told Becker’s that 80 affected employees are expected to find new roles within Methodist Le Bonheur, and those who do not will be offered severance pay and career transition support.

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Hospital Layoffs and Restructuring – May & April 2024

Here’s a rundown of recent hospital layoffs and restructuring efforts, compiled from reports in Becker’s Hospital Review:

May

29. Holy Family Hospital (Haverhill, Mass.) plans to end medical-surgical inpatient care due to low patient census, perhaps impacting around 35 employees.
30. UC Health (Cincinnati) will close the Daniel Drake Center for Post-Acute Care by Sept. 30, affecting over 400 employees as part of a broader phase-out of long-term post-acute inpatient and skilled nursing care. Affected employees can apply for other roles within the system.
31. PeaceHealth (Vancouver, Wash.) announced a 1% workforce reduction,impacting programs and jobs at PeaceHealth Sacred Heart Medical Center at RiverBend (Springfield,Ore.) and PeaceHealth Southwest Medical Center (Vancouver). This includes caregiver roles and position eliminations. 32. Catholic Health (Rockville center, N.Y.) laid off approximately 1% of its 17,000+ employees. Specific numbers and positions affected were not disclosed.
33. NewYork-Presbyterian (new York City) plans to lay off 1,000 employees, representing 2% of its 50,000-member workforce.
34. MemorialCare (Fountain Valley, Calif.) will lay off 115 positions at long Beach Medical Center and Miller Children’s and Women’s Hospital (Long Beach, Calif.) by July 1. Reductions include nurses, technicians, and administrative staff. Earlier in May, MemorialCare restructured its case management department, affecting 22 positions and transitioning to an RN case manager model.

April

* 35. Baystate Health (Springfield,Mass.) plans to lay off 43 employees. This follows a 7% workforce reduction as November, primarily through attrition.

Hospital Layoffs Continue: A Look at Recent Workforce Reductions

Recent months have seen a continued wave of layoffs across the healthcare industry,impacting hospitals and health systems nationwide. Here’s a rundown of reported workforce reductions as of late April 2024:

April

St. Joseph’s/Candler (Savannah, Ga.): 95 environmental services department employees were affected, including attendants, floor attendants, linen distributors, shift supervisors, a department assistant, and the director of environmental services.
Kaiser Permanente (Okland, Calif.): Announced plans to cut 64 jobs, primarily in business function and IT roles, with layoffs slated for April 25.

March

Valley Medical center (Renton, Wash.): Laid off 101 employees following the end of Medicaid benefits on December 31st.Cuts impacted leadership, support, nonclinical, and ancillary departments.
University of Pennsylvania Health System (Philadelphia): Eliminated approximately 300 positions, representing a 0.5% workforce reduction. Over 100 of these were vacant or held by retiring employees.
Springfield (Ill.) Clinic: Confirmed layoffs, but did not disclose the timeline or number of positions affected.
East Ohio Regional Hospital (Martins Ferry, Ohio): Eliminated jobs as part of a closure that included the hospital, pharmacy, long-term care/skilled nursing facility, and emergency department. Layoffs focused on “ancillary services” to prioritize payroll. Kindred Hospitals (Tampa, Fla.): Cut 143 jobs at Kindred Hospital Bay Area-Tampa and closed the facility to consolidate with Kindred Hospital St.Petersburg and Kindred hospital Tampa Central.

christus Health (Irving, Texas): Filed a WARN notice indicating forthcoming layoffs (details not fully available in this report).

These layoffs reflect ongoing financial pressures within the healthcare sector, driven by factors such as Medicaid cuts, consolidation efforts, and broader economic challenges.

Baystate health Announces Workforce Reduction as Part of Financial turnaround

Baystate Health, a regional healthcare system in western Massachusetts, announced a reduction of 98 positions in August 2024 as part of a broader effort to address financial challenges and ensure long-term sustainability. The cuts impact various departments and levels within the organization, reflecting a strategic realignment to improve operational efficiency and adapt to evolving healthcare demands.

Financial Challenges Facing Baystate Health

Baystate Health, like many healthcare systems nationwide, has been grappling with significant financial pressures. These pressures stem from a combination of factors, including rising labor costs, increasing supply expenses, and shifts in payer mix. Specifically,Baystate Health reported an operating loss of $58.7 million on $2.8 billion in revenue in fiscal year 2023, according to Becker’s Hospital Review. The system also faces challenges related to reimbursement rates and the increasing prevalence of high-deductible health plans.

Details of the Workforce reduction

The 98 positions eliminated represent approximately 1.5% of Baystate Health’s total workforce. The cuts are not concentrated in any single area but are spread across multiple departments, including administrative roles, support staff, and some clinical positions. Baystate Health stated that the decision to reduce staff was difficult but necessary to streamline operations and reduce costs. Affected employees are receiving severance packages and outplacement services to assist with their transition.

Impact on Patient Care

Baystate Health has emphasized that the workforce reduction is designed to minimize disruption to patient care. The organization is focusing on optimizing workflows and leveraging technology to maintain service levels. Leaders have stated that clinical care will remain a top priority, and thay are committed to ensuring patients continue to receive high-quality care. However, some concerns have been raised by unions representing healthcare workers regarding potential impacts on staffing levels and patient safety. MassLive reported on union concerns following the announcement.

strategic Initiatives for Financial Recovery

the workforce reduction is just one component of Baystate Health’s broader financial recovery plan.Other key initiatives include:

• Cost Optimization: Identifying and implementing cost-saving measures across all areas of the organization.
• Revenue Enhancement: Expanding services, attracting new patients, and negotiating favorable contracts with payers.
• Operational efficiency: Streamlining processes, improving productivity, and leveraging technology to enhance efficiency.
• strategic Partnerships: Exploring potential collaborations and partnerships to expand reach and reduce costs.

Future Outlook

Baystate Health anticipates that these measures will help to stabilize its financial position and position it for long-term success. The healthcare landscape continues to evolve rapidly, and Baystate Health is committed to adapting to these changes and providing high-quality, affordable care to the communities it serves. The system will continue to monitor its financial performance and make adjustments as needed to ensure its sustainability.

Key Takeaways

• Baystate Health cut 98 positions in August 2024 due to financial challenges.
• Financial pressures include rising costs, shifting payer mixes, and reimbursement rates.
• The cuts are part of a broader financial recovery plan focused on cost optimization, revenue enhancement, and operational efficiency.
• Baystate Health aims to minimize disruption to patient care during the restructuring process.

Publication Date: 2025/08/31 10:54:55