Houston-based Memorial Hermann Health System is laying off 112 employees, or less than 1 percent of its 25,000-employee workforce, according to a Houston Chronicle report.
The layoffs, announced Wednesday, primarily affect people in leadership positions, according to the article. This includes vice presidents, senior vice presidents, managers and directors.
"The changes will streamline, or flatten, our organizational structure, thereby allowing us to quickly and proactively respond to national, state and local changes in the industry," Benjamin Chu, MD, the system's new president and CEO, wrote in an internal email sent Wednesday, according to the report.
A Memorial Hermann spokesperson also emphasized to the Houston Chronicle that the workforce reduction was about restructuring rather than financial troubles.
She told the publication Memorial Hermann has 1,800 vacant positions it seeks to fill and noted its new hospital in Cypress, Texas, is scheduled to open in March. The system also still plans to expand its northeast campus in Humble, Texas, in 2017.
In the meantime, employees affected by the layoffs will continue to work through Feb. 3, according to the report.
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