Fierce Healthcare is tracking workforce changes across healthcare in 2025. Stick with this tracker for the latest updates, and reach out to the team with any layoff news. Also, take a look back at our 2024 tracker.
Baystate Health trims 98 corporate positions
Massachusetts-based nonprofit Baystate Health confirmed Tuesday that it is eliminating 98 positions across the organization—some of which were vacant, and some of which will result in "individuals leaving Baystate."
The five-hospital system said it is working to find different roles for some of those affected, and will be providing severance pay and "other job support, including access to career transition services" for others who are eligible.
The affected positions represent less than a percent of Baystate's nearly 13,000 workforce and reflect corporate roles. The system continues "to aggressively recruit, hire and retain physicians, Advanced Practice Providers and bed-side caregivers," according to a statement.
Baystate has been working to tighten its organizational structures since October. November saw the kickoff of a "$225 million transformational journey," which was accompanied by 134 layoffs among those in management positions.
"We have active workstreams right now in workforce, supply chain, pharmacy, and revenue cycle management, amongst others," the system said in its statement. "Our disciplined focus on core operations and strategic growth must become part of our daily routine."
Highmark Health IT subsidiary lays off 208 workers
Feb. 4
enGen, the information technology subsidiary of Highmark Health, has laid off 208 employees, the insurer confirmed to Fierce Healthcare.
Of the affected workers, 186 are individual contributor positions and 22 are management level.
Highmark said in a statement it is “transforming to meet the changing needs” of the company to operate more efficiently.
“We are focused on building the workforce of future [sic], which requires identifying talent gaps, investing in in-demand roles, such as nursing, and adapting technologies, such as AI, to better anticipate demand and drive value for consumers,” a spokesperson said in a statement. “We are also looking for opportunities to transition/centralize/shift work that enables our employees to leverage their skill sets and work at the top of their license.”
Workers resided in Pennsylvania, West Virginia, New York and other states, the Post-Gazette reported.
In a similar statement last year, the company said Highmark was looking to developing the workforce of the future and invest in nursing and AI.
Endeavor Health cuts over 100 jobs
Jan. 30
Endeavor Health, a nine-hospital system in Illinois formerly known as NorthShore — Edward-Elmhurst Health, confirmed plans to discontinue inpatient psychiatric services at its Northwest Community Hospital beginning April 11.
The decision is expected "to impact approximately 100" hospital employees who the system is "hopeful" will take up other positions within the organization.
"This change is driven [by] a sustained decrease in demand for inpatient behavioral health services as we have seen an increased emphasis on outpatient and community-based care and telehealth services, and the opportunity and need to align our expertise and resources to provide safe, high-quality patient care," a representative wrote in a statement. "We have an exceptional, dedicated behavioral health team at NCH, and we remain committed to helping them explore other opportunities at and beyond Endeavor Health."
The organization said it doesn't expect the service line closure will harm local access to care due to "excess capacity" around the hospital and the broader system. There will be no changes to outpatient behavioral care at the hospital, which "remains as strong as ever" and is slated to grow as the system adds providers, creates specialty programs and integrates counselors with primary care offices.
Beyond the service line closure, the statement also addressed a separate "small number of individuals impacted across various other areas of our organization." The system did not specify how many employees this includes, but said "[t]he number of impacted individuals is relatively small given the size of the health system, and we are committed to supporting all those who are impacted."
GuideWell cutting 3% of workforce
Jan. 27
GuideWell, the parent company of Florida Blue, is reducing its staff by 3% as it takes steps to "streamline" the organization, a spokesperson confirmed to Fierce Healthcare.
While GuideWell did not say how many individuals this impacts specifically, the company did not that it would include people working in 29 states. GuideWell chose to make some organizational shifts as it focuses on "adapting to changing market conditions as part of our continuous focus on operational effectiveness and efficiency," the spokesperson said.
The effected employees and the organization broadly will be supported during the transition period, the spokesperson said.
"The health care industry is facing complex challenges, including competitive market conditions, regulatory changes, and rising medical costs," they said. "We are driving necessary innovation and transformation to keep healthcare costs under control, advance operational excellence, and make improvements in care for our members."
"GuideWell and its Florida Blue subsidiary are mission driven, financially strong, and well-positioned for the challenges and opportunities ahead," the spokesperson said.
Cleveland Clinic eliminates 114 administrative management roles
Nonprofit health system Cleveland Clinic said it is cutting 3% of its administrative management to create "efficiencies in how we manage our organization," CEO and President Tom Mihaljevic, M.D., said during Jan. 27 "State of the Clinic" address.
The cuts, which were reported in press a few days prior, spanned multiple departments in nonclinical areas. Those affected may apply to other open positions within Cleveland Clinic or opt to accept a severance package, per the reports.
The eliminations come as Cleveland Clinic disclosed above-expected revenues for 2024 as well as a 1.7% operating margin, which Mihaljevic said fell below the organization's 2.7% target. He attributed the shortcoming to an “unexpected increase in charity care totaling $370 million,” smaller discounts on drug treatments and surging malpractice insurance costs. Accompanying materials also pointed to workforce shortages and inflation.
“This type of decision is never easy and we are supporting our administrative managers during their transition,” he said during the address.
Lehigh Valley Health Network lays off 'approximately 100'
Jan. 22
Pennsylvania's Lehigh Valley Health Network confirmed "approximately 100" layoffs following "some changes in areas that provide outpatient care to align the staffing structure with community needs," according to a statement provided by a representative of the health system.
The organization employs more than 23,000 people and runs hospitals and other outpatient locations across 10 counties in eastern Pennsylvania. Last summer it merged with nearby academic system Jefferson Health, creating a combined organization of 65,000 workers, 32 hospitals and more than 700 care sites serving the tristate area.
Adjustments that led to the layoffs began "well in advance" of the merger "as a way to ensure operational efficiency so that we can invest in the programs and services our communities need," according to the statement. No information was given about specific roles affected, severance or other support for those affected.
Blue Cross Blue Shield of Michigan offers buyouts
Jan. 21
Workers for Blue Cross Blue Shield of Michigan are considering whether to accept employee buyouts as the health plan looks to shed $600 million in administrative costs over several years.
The insurer says increased medical utilization and rising prices for prescription and specialty drugs are two primary reasons for the buyouts. It will now offer voluntary separation until the end of the month for more than 700 employees who are retirement eligible this year.
“Our company has lost more than $1 billion on our core health insurance business in two years, and these costs are now weighing heavily upon our ability to continue providing affordable health coverage,” said a spokesperson. “As we take double-digit premium increases out to our fully-insured customers now to account for the higher costs we are experiencing, we have a responsibility to look inward and take steps to lower our own costs.”
BCBSM needs to cut $285 million in costs this year alone, reported the Detroit Free Press, but an internal memo circulated to employees did not indicate how many employees the health plan hopes accept the offer.
In June, the insurer said it would no longer cover GLP-1 drugs for large group fully insured plans as of Jan. 1. Health plans across the country have adopted similar practices due to the exorbitant cost of GLP-1 drugs in the country.
Jefferson Health outsources 171 support roles
Jefferson Health is trimming 171 jobs come March 10 as it outsources back-office support roles, according to a Philadelphia Inquirer report citing state regulatory documents.
The roles affected are mostly remote and cover areas such as billing, insurance preauthorization and clinical documentation. Some of those being laid off are represented by a union.
The health system did not share what company it has tapped to outsource the roles.
Steward Health Care fails to find buyer for Sharon Regional Medical Center
The Jan. 6 closure of Steward Health Care's Sharon Regional Medical Center in western Pennsylvania brought 848 layoffs, according to two WARN filings from December.
The hospital's fate has been in question for months as for-profit Steward navigated its bankruptcy proceedings. The company had initially been working with Meadville Medical Center to secure a sale but turned to Tenor Health Partners after that deal fell through. However, Steward and Tenor were unable to come up with an agreement before a Jan. 6 deadline.
The pair is reportedly still in talks to close a deal, which could reopen the hospital.