California hospitals and health systems have seen a heavy year for layoffs, shedding hundreds of jobs tied to challenges like thinning margins, policy and economic headwinds and rising operating costs.
Here are seven hospitals and health systems in California conducting layoffs that Becker’s has reported on in 2026:
1. Walnut Creek, Calif.-based John Muir Health shared plans in early September to lay off 75 employees, or about 1% of its workforce. The roles were mainly leadership, administrative services and those that do not provide direct patient care. Affected employees received more than 60 days notice and will get pay and benefits through Oct. 28. Those who do not find another position at John Muir will be offered a severance package.
“The layoffs also reflect the current healthcare environment with lower patient volumes and revenues, as well as increased expenses for labor, pharmaceuticals and supplies,” the health system said in a Sept. 1 news release. “In addition, John Muir Health is proactively preparing for future expenses. California’s 2030 seismic mandate is an unfunded requirement that will cost John Muir Health more than $2 billion in additional facility upgrades.”
2. Palo Alto, Calif.-based Stanford Health Care also shared plans in early September to lay off 95 employees. The layoffs will affect employees across the system’s technology, digital solutions and other administrative departments, with around 80 affected in its technology and digital services. The cuts are connected to a regular review of Stanford’s operations and patient needs. Affected employees will remain on the payroll with benefits until Nov. 2.
3. In early August, San Diego-based Sharp HealthCare reduced its workforce and realigned operations across many areas of the system, affecting about 260 employees. The reduction amounted to just under 1% of Sharp’s workforce, with many employees offered alternative roles at the system. Affected roles included registered nurses, nurse practitioners, social workers, imaging technicians and case management staff, transportation, credentialing, intake, patient services and other administrative and business operations employees.
Sharp pointed to rising labor and supply costs, stagnant government reimbursement rates and federal and state policy changes like HR 1 and unfunded state mandates.
4. San Francisco-based Dignity Health laid off 139 employees across two Southern California hospitals on Aug. 3. The cuts affected 57 employees at Bakersfield Memorial Hospital and 82 employees at California Hospital Medical Center in Los Angeles.
“At Bakersfield Memorial Hospital and California Hospital Medical Center, our unwavering commitment is to deliver exceptional care and be a strong, sustainable partner in the health of our communities,” a Dignity spokesperson told Becker’s. “Maintaining this commitment is difficult given the financial landscape impacting healthcare systems across the country which have impacted our business as well. With careful consideration, we are realigning our resources and enhancing operational efficiencies to ensure we can continually serve our patients well into the future.”
5. Roseville, Calif.-based Adventist Health shared in early July that it had laid off 132 employees amid systemwide restructuring of several functions. The system centralized its quality, risk management, infection prevention and accreditation teams, moving from a model where those functions were managed at individual hospitals.
The restructuring aimed to increase access to specialized expertise, strengthen accountability and standardize best practices at the system. Adventist Health told Becker’s it was working to place affected employees in other positions, with 109 of the 132 affected workers offered other positions at the system.
6. In March, Orange, Calif.-based UCI Health shared plans to lay off around 150 workers, or about 1% of the system’s workforce, due to a “strategic restructuring” amid financial pressures like federal funding cuts and insurance reimbursement changes.
UCI Health did not disclose the specific roles affected, but said they included a mix of administrative, support and operational functions. The realignment aimed to help the system “sustainably operate at scale,” unify specific functions and redirect resources to other community need areas like primary care access, surgical services, specialty care or advanced treatment options.
7. Pomona (Calif.) Valley Hospital Medical Center announced in early January plans to eliminate 265 positions amid state and federal funding cuts, including HR 1. The layoffs aimed to preserve care access, long-term sustainability and address financial headwinds.
The hospital said 128 of the affected roles would be eliminated through attrition and planned retirements in 2026, with another 137 removed through layoffs and hours reductions. The layoffs occurred March 8, and affected employees received severance, unemployment assistance, outplacement services and continued medical benefits access. A voluntary separation program and the ability to apply for open positions at the hospital were also offered.
“It is with deep regret that we must take these difficult actions,” hospital President and CEO Richard Yochum said in a January statement shared with Becker’s. “Sadly, we are not alone in facing this healthcare industry crisis. We are working rigorously alongside policymakers and with our national, state and local healthcare advocacy associations to further protect funding to maintain our ability to deliver high quality healthcare services.”
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