Here are six things to know about the layoffs.
1. In a company memo, Scripps Health President and CEO Chris Van Gorder said the layoffs affect employees in the human resources and marketing departments, according to the report. He says all impacted employees will be offered the opportunity to go into the system’s career resource center where Scripps works with them to find another position at Scripps and offer other support services.
2. Of the layoffs, Mr. Van Gorder, who has reinforced a no-layoff philosophy over the duration of his tenure, wrote: “I want to emphasize that Scripps is financially strong, but we cannot continue to allow our costs and operations to rise while our revenue continues to be flat.”
3. The layoffs will take place May 20 through Oct. 4.
4. This marks the first time Scripps has implemented a layoff affecting employees in more than 15 years, since Mr. Van Gorder joined the system. “That isn’t the norm in my industry, obviously,” he wrote for Harvard Business Review in 2015.
5. “Chris is one of the most direct, smartest and most effective CEOs in the country,” says Scott Becker, publisher of Becker’s Healthcare. “I’m sure this pains him greatly, and I’m sure it’s something they have done in as measured a way as possible.”
6. Scripps Health employs more than 13,000 workers, and has more than 2,600 affiliated physicians, according to its website.
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