Philadelphia-based Jefferson Health plans to lay off around 1% of its 65,000-person workforce, or approximately 650 employees, a spokesperson for the system confirmed to Becker’s.
The spokesperson did not detail which roles would be impacted.
Joseph Cacchione, MD, CEO of Jefferson, said in an Oct. 16 statement shared with Becker’s that the health system is “facing significant financial headwinds.”
“To sustain our mission and continue serving our communities, we must take thoughtful, strategic actions to align our operations for the future,” Dr. Cacchione said. “While these decisions are never easy, they are necessary to ensure Jefferson remains strong and able to invest in expanding access to care, advancing innovation, and supporting those who rely on us most.”
The news comes after Jefferson merged with Allentown, Pa.-based LVHN on Aug. 1, 2024. The system then outsourced some of its back-office functions in early January, which affected 171 roles.
In mid-October, Fitch lowered Jefferson’s outlook to negative from stable after it reported a $196 million operating loss (-1.2% operating margin) in fiscal 2025, ended June 30. Fitch expects the system to see a “measured recovery” over the next 24 to 36 months.
