Michigan Medicine to lay off 738 employees by end of June

Ann Arbor-based Michigan Medicine will eliminate 738 positions by the end of June amid financial challenges from the COVID-19 pandemic, according to MLive.com.

In May, the health system said it projected a financial loss of up to $230 million in the fiscal year ending June 30 and planned to furlough or lay off 1,400 full-time employees.

Mary Masson, a Michigan Medicine spokesperson, said July 19 the health system has achieved more than half of its target through attrition and furloughs. Therefore, the workforce reduction will affect about 738 employees. 

Affected employees will receive pay and benefits based on tenure, and all will have access to career transition assistance, Ms. Masson said in a statement provided to Becker's Hospital Review.

"Michigan Medicine made safety in all our missions the top priority when determining where reductions in force would occur," she said. "These challenging but carefully considered actions will help Michigan Medicine continue to provide hope and healing to our patients and allow us to continue to support our clinical, educational and research missions."

Michigan Medicine leaders took pay cuts to reduce expenses. The health system also suspended merit increases and delayed capital projects.


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