Beaumont Health to cut 450 positions, furlough 2,475 staffers

Southfield, Mich.-based Beaumont Health will permanently lay off 450 staff members, cut executive pay and furlough 2,475 workers due to the "dire" financial hit from the COVID-19 pandemic.

Beaumont Health CEO John Fox will take a 70 percent pay cut to his base salary, and the executive leadership team will take a 45 percent pay cut. 

Most of the 450 layoffs affect corporate staff or administrative employees. The furloughs affect staff not directly caring for patients and hospital administrative staff. 

Laid-off employees will receive lump-sum severance packages and have the option to continue healthcare benefits through their severance period. 

Last week Beaumont reported a net loss of $278.4 million in the first quarter of 2020, which ended March 31. The health system attributed the loss to the COVID-19 pandemic, which  damaged operating and nonoperating income. 

"We also expect economic pressures on Beaumont and the healthcare industry to continue well after the COVID-19 initial surge subsides," Beaumont said in a news release. "We must adjust the way we operate our organization moving forward. This pandemic has changed the delivery of healthcare, and we will be treating patients with this virus until we get a vaccine."

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