In a memo to employees, Ochsner CEO Pete November said the workforce reduction is “the hardest change we have ever had to make at Ochsner.” This is the largest layoff to date for the 47-hospital system.
Mr. November said Ochsner has taken measures to address its “financial and workforce challenges,” including freezing management hiring, renegotiating supply and service contracts, decreasing agency staffing, and reducing discretionary spending. These cost reduction strategies were not enough, Mr. November said, resulting in the “difficult step” of reducing the Ochsner workforce.
In 2022, Ochsner lost $96 million with its expenses exceeding revenues by 1.5 percent, local news outlet nola.com reports.
Affected positions are in management and primarily non-direct patient care roles. No physicians are affected. Any employees who hold eliminated positions and active clinical credentials will be offered jobs in direct patient care. Full and part-time employees who are laid off will receive full pay and benefits for up to 65 days depending on their work schedule, in addition to severance packages.
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