Stanford Medicine’s Lucile Packard Children’s Hospital in Palo Alto, Calif., is laying off 87 workers amid financial challenges, including reductions in federal funding.
The layoffs, which affect about 1% of the 361-bed hospital’s workforce, will take effect Dec. 12, according to an Oct. 10 WARN notice filed with the state. The positions being eliminated include clinical pharmacists, case managers, administrative assistants, housekeeping specialists, food service workers and a chaplain, according to a list the hospital submitted to the state, which was obtained by Palo Alto Online.
The job cuts are part of a broader “operational restructuring” that also includes workflow improvements, departmental reorganizations, and standardization of full- and part-time positions, Stanford Medicine Children’s Health, the pediatric arm of Stanford Medicine, said in a statement to Becker’s. The hospital is also offering optional early retirements.
“These latest actions are in addition to steps taken earlier in the year when we planned for and responded to changes in policy and reductions in healthcare funding nationally by implementing a hiring freeze and reducing temporary and contracted labor,” the hospital said.
Affected employees will receive regular pay and benefits, as well as severance pay until their employment officially ends, officials said.
“Ongoing economic uncertainty in 2025 has created serious operational and financial challenges for academic medical institutions,” Christopher Comma, vice president for human resources at Lucile Packard Children’s, said in a letter submitted to the state, which was also cited by the news outlet. “At Stanford Children’s, anticipated changes in regulatory headwinds are expected to have significant budgetary consequences.”
“These developments, along with rising operational costs, shifts in funding sources and programmatic changes, have resulted in this workforce reduction,” Mr. Comma wrote.
In Santa Clara County, where the hospital is located, the One Big Beautiful Bill Act is estimated to lead to an annual loss of around $1 billion in revenues, according to Palo Alto Online. President Donald Trump signed the bill into law in July. It includes more than $911 billion in Medicaid spending reductions over 10 years.
