New Jersey health system lays off 50 employees, consolidates services

Marlton, N.J.-based Virtua health system confirmed it laid off approximately 50 employees, or less than 1 percent of its 9,000-person workforce.

In addition, the organization is consolidating certain services.

Virtua attributed both moves to ongoing changes within the healthcare industry.

"The healthcare industry is in the midst of significant transformation, both regionally and across the country. Uncertainty resulting from ongoing changes will continue to have a significant impact on health care institutions. Virtua is no exception," said health system spokesperson Peggy Leone in an emailed statement.  

"In light of this environment, and following a careful evaluation, Virtua identified a number of opportunities for efficiencies and changes to programs that will allow the organization to meet these industry challenges while continuing to provide high quality, affordable care. One of those opportunities was the consolidation of certain services; the streamlined services reside primarily within our ambulatory programs and support departments, and will not adversely impact patient care or our core commitment to deliver high quality care.

"We also made the very difficult decision to implement a modest reduction in our workforce, which was communicated to affected employees last month. After accounting for vacant positions and attrition, we eliminated approximately 50 occupied positions in our organization."

The statement did not reveal the specific positions affected by the layoffs. However, Ms. Leone said Virtua is providing support to affected employees, such as help applying for open positions in the health system, outplacement services and severance benefits.


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