Last year, the Fierce Healthcare team compiled a running tally of layoffs across the industry, as well as ongoing updates from hospitals specifically as they emerged from a financially damaging 2022.
Now, we're doing the same for similar workforce changes in 2024. Stick with this tracker for the latest updates, and reach out to the team with any layoff news.
UPDATED at 1:30 p.m. on August 19
Blue Cross Blue Shield of Michigan has laid off 64 workers, citing industrywide cost pressures from drug claims and medical care utilization.
The company said it recorded a $544 million underwriting loss in 2023 and its financial woes are continuing this year.
"Our company sits in an uncomfortable position between two extraordinary pressures—the skyrocketing increase in healthcare costs and the desire of our customers to maintain the affordability of their health insurance plans," Blue Cross Blue Shield of Michigan said in a statement to Fierce Healthcare. "As part of a broad effort to immediately address our administrative costs, Blue Cross has taken cost-reduction measures including reductions in discretionary spending and marketing, and eliminating 64 positions, out of more than 10,800, across several divisions of the company."
It's unknown what positions were eliminated in this round of layoffs. In June, the insurer announced it would no longer cover GLP-1 drugs for weight loss in its group fully insured plans for next year.
The news was first reported by Crain's Detroit Business.
UPDATED at 6 p.m. on August 7
Texas Children's Hospital in Houston is laying off 5% of its workforce, the Houston Chronicle reported on Tuesday.
The hospital reportedly has 20,000 employees so a 5% reduction would cut roughly 1,000 jobs.
The country's largest children's hospital is facing financial challenges, the Chronicle reported.
Multiple factors, including lower patient volumes in Houston and a two-week delay in the opening of the new Austin campus, contributed to the hospital reporting an operating income loss of nearly $200 million through the first six months of its current fiscal year.
Executives told the Chronicle they do not anticipate the cuts will affect patient care.
In an interview with the media outlet, Executive Vice President and Chief Human Resources officer Linda Aldred said the layoffs are the result of what she characterized as “historic financial challenges” within the health care industry. She said Texas Children’s took other measures before determining layoffs were necessary; for example, the hospital has reduced the size of its executive leadership team and plans to cut executives' compensation this year.
UPDATED at 9:10 a.m. on July 1
Novant Health plans to lay off 171 workers in North Carolina and South Carolina, effective August 25.
A WARN notice filed with the former outlined 81 permanent layoffs, while another for the latter outlined 90 cuts. The system, in statements to press, attributed these cuts to its previously announced outsourcing of digital and IT services to Deloitte Digital. That move will reduce the system's use of other external partners by 90%.
Novant Health employs nearly 40,000 people systemwide.
UPDATED at 10:10 a.m. on June 25
New York's Garnet Health shared word of restructuring and service line adjustments it said will impact 26 of its employees.
The system said its decision will bring about $4.6 million in salaries and benefits savings, and is the latest effort to restore its finances back to pre-pandemic health. The organization cited higher expenses and insufficient reimbursement rates, as well as volume increases that haven't yet returned to pre-pandemic levels.
The 26 employees represent less than a percent of Garnet's total workforce, and cover a mix of management, union and non-union staff, the system said. All workers have been notified, and severance packages "have been provided to those eligible," it said.
Service line changes are also accompanying the job cuts. Per the announcement, Garnet's inpatient palliative care services will no longer be delivered by a dedicated team of specialists, its medical group will reduce outpatient capacity and focus on inpatients in response to limited demand, and the system will soon no longer provide medical directorship to three nearby post-acute facilities.
“We made a commitment to the communities we serve, as well as to our organization, to pursue fiscal strategies that will restore Garnet Health to pre-pandemic financial strength," President and CEO Jonathan Schiller said in a release. "As healthcare advances, we must be able to leverage opportunities that provide growth and stability so we can continue to improve the health of our community by providing exceptional healthcare for generations to come.”
UPDATED at 1:30 p.m. on June 20
Ohio's University Hospitals announced plans to cut over 300 jobs in a bid to reduce its "soaring costs."
The eliminations will trim the health system's leadership structure by about 10%, the organization wrote in a release. University Hospitals said the cut jobs won't impact patient care and noted that the "vast majority" are among non-clinical roles.
The system began notifying employees on June 17. Those being let go will receive severance packages, the organization said.
“These decisions are never easy,” CEO Cliff Megerian, M.D., said in a statement. “The important thing is that we make these strategic moves now so we can continue to serve our community and fulfill our mission for decades to come. We are thankful for our hometown team that delivers lifesaving care to our neighbors, friends and relatives each and every day.”
University Hospitals said the cuts are part of its efforts over the last three years to increase efficiency and consolidate services. The system logged a $256 million operating loss during its most recent fiscal year.
UPDATED at 11:00 a.m. on June 11
Oregon Health and Science University is planning to lay off more than 500 employees "over the next few months."
The plans were disclosed in a Thursday email to staff that the organization later confirmed to press. The exact number of layoffs are still in flux and will be disclosed in regulatory documents during the coming weeks. Some workforce reductions will begin alongside OHSU's annual review and contract renewal process.
The internal email and public statements released since attributed the decision to financial pressures.
OHSU is in the midst of a merger with Legacy Health, having signed a definitive agreement to combine and form a 12-hospital system in May.
OHSU scheduled a employee town hall this week to answer questions from staff on the merger and layoffs.
The American Federation of State, County & Municipal Employees, a union representing many of the system's workers, criticized the decision to layoff staff "while writing checks for million dollar bonuses to their top executives and adding $350,000 to CEO Dr. Danny Jacobs’ retirement account."
UPDATED at 1:25 p.m. on June 3
Cigna has laid off 261 employees in Arizona, according to a filing with the state.
The layoffs, which take place in the insurer's Evernorth Care Group, was issued as a Worker Adjustment and Retraining Notification (WARN) Act notice dated Friday, May 31. Cigna will provide transition services to the affected workers.
"Evernorth Care Group remains highly committed to serving our patients in Arizona, and we will continue to provide high-quality, affordable care and exceptional service," said an Evernorth spokesperson. "Our comprehensive integrated primary care services include family, internal medicine and geriatric care, dermatology and behavioral/ mental health services. In addition, our care centers conveniently offer retail pharmacies at several of our locations.
"All clinicians and the majority of staff will be relocating to nearby centers," the spokesperson added.
Cigna told Fierce Healthcare they will consolidate primary care locations and wind down "certain specialty services" over the next several months. On Sept. 1, its North Valley and South Mountain locations will close permanently. The insurer will also close locations including ambulatory surgery center, audiology, general surgery, pediatrics, podiatry, vision, urgent care services and eight onsite retail pharmacies.
In February, Cigna revealed it would repurchase $3.2 billion in stocks. The company said in December it would prioritize $10 billion in stock buybacks once its merger deal with Humana fell apart. CEO David Cordani previously said buybacks are indicative of the company's growth and strength.
Evernorth Care Group is the medical practice division of Cigna Healthcare of Arizona, providing primary, virtual and urgent care to members. In May, Cigna wrote off $1.8 billion from its investment in Walgreens' VillageMD primary care business, of which Cigna's Evernorth unit owns a minority stake. Walgreens clinics have struggled since Cigna's investment in 2022, as Walgreens shutters locations around the country.
UPDATED at 4:05 p.m. on May 23
Walmart will lay off 74 Phoenix-based employees in its Virtual Care business, according to a filing with the state.
The retail giant issued a Worker Adjustment and Retraining Notification (WARN) Act notice dated May 17 to disclose the job cuts. Walmart announced in late April that it will shutter all 51 of its care centers and its virtual care division, with executives saying they segments were not a "sustainable business model for us to continue."
The company said that rising costs and challenges around reimbursement made healthcare services unsustainable for the future.
UPDATED at 11:17 a.m. on May 9
Highmark has laid off 47 people, which comes on the heels of layoffs that impacted 182 employees in March, according to a report from PennLive.
A spokesperson from the insurer confirmed the layoffs to the newspaper, and the company said in a statement that its push toward transformation requires taking a close look at its operations.
"Highmark Health is actively transforming to meet the changing needs of members and our communities through our Living Health model while maintaining financial strength and stability," the Pittsburgh-based insurer said.
Highmark said that it is focused on building the "workforce of the future," with investments in areas like AI and nursing, and emphasized that while it has laid off workers this year, it's also hiring.
Kaiser Permanente filed regulatory notices outlining plans to lay off 76 California employees by June 21.
None of the employees are represented by a union, and many hold IT and marketing roles within the system. A representative of the organization has told media that it will be providing severance and career support services for those affected.
The layoffs are the latest wave of reductions at Kaiser Permanente, which has now laid off roughly 350 workers since last November. These have largely affected IT and administrative positions.