Fierce Healthcare layoff tracker—OHSU to lay off over 500 workers

Last year, the Fierce Healthcare team compiled a running tally of layoffs across the industry, as well as ongoing updates from hospitals specifically as they emerged from a financially damaging 2022.

Now, we're doing the same for similar workforce changes in 2024. Stick with this tracker for the latest updates, and reach out to the team with any layoff news.

UPDATED at 11:00 a.m. on June 11

Oregon Health and Science University is planning to lay off more than 500 employees "over the next few months."

The plans were disclosed in a Thursday email to staff that the organization later confirmed to press. The exact number of layoffs are still in flux and will be disclosed in regulatory documents during the coming weeks. Some workforce reductions will begin alongside OHSU's annual review and contract renewal process.

The internal email and public statements released since attributed the decision to financial pressures.

OHSU is in the midst of a merger with Legacy Health, having signed a definitive agreement to combine and form a 12-hospital system in May.

OHSU scheduled a employee town hall this week to answer questions from staff on the merger and layoffs.

The American Federation of State, County & Municipal Employees, a union representing many of the system's workers, criticized the decision to layoff staff "while writing checks for million dollar bonuses to their top executives and adding $350,000 to CEO Dr. Danny Jacobs’ retirement account."

UPDATED at 1:25 p.m. on June 3

Cigna has laid off 261 employees in Arizona, according to a filing with the state.

The layoffs, which take place in the insurer's Evernorth Care Group, was issued as a Worker Adjustment and Retraining Notification (WARN) Act notice dated Friday, May 31. Cigna will provide transition services to the affected workers.

"Evernorth Care Group remains highly committed to serving our patients in Arizona, and we will continue to provide high-quality, affordable care and exceptional service," said an Evernorth spokesperson. "Our comprehensive integrated primary care services include family, internal medicine and geriatric care, dermatology and behavioral/ mental health services. In addition, our care centers conveniently offer retail pharmacies at several of our locations.

"All clinicians and the majority of staff will be relocating to nearby centers," the spokesperson added.

Cigna told Fierce Healthcare they will consolidate primary care locations and wind down "certain specialty services" over the next several months. On Sept. 1, its North Valley and South Mountain locations will close permanently. The insurer will also close locations including ambulatory surgery center, audiology, general surgery, pediatrics, podiatry, vision, urgent care services and eight onsite retail pharmacies. 

In February, Cigna revealed it would repurchase $3.2 billion in stocks. The company said in December it would prioritize $10 billion in stock buybacks once its merger deal with Humana fell apart. CEO David Cordani previously said buybacks are indicative of the company's growth and strength.

Evernorth Care Group is the medical practice division of Cigna Healthcare of Arizona, providing primary, virtual and urgent care to members. In May, Cigna wrote off $1.8 billion from its investment in Walgreens' VillageMD primary care business, of which Cigna's Evernorth unit owns a minority stake. Walgreens clinics have struggled since Cigna's investment in 2022, as Walgreens shutters locations around the country.

UPDATED at 4:05 p.m. on May 23

Walmart will lay off 74 Phoenix-based employees in its Virtual Care business, according to a filing with the state.

The retail giant issued a Worker Adjustment and Retraining Notification (WARN) Act notice dated May 17 to disclose the job cuts. Walmart announced in late April that it will shutter all 51 of its care centers and its virtual care division, with executives saying they segments were not a "sustainable business model for us to continue."

The company said that rising costs and challenges around reimbursement made healthcare services unsustainable for the future.

UPDATED at 11:17 a.m. on May 9

Highmark has laid off 47 people, which comes on the heels of layoffs that impacted 182 employees in March, according to a report from PennLive.

A spokesperson from the insurer confirmed the layoffs to the newspaper, and the company said in a statement that its push toward transformation requires taking a close look at its operations.

"Highmark Health is actively transforming to meet the changing needs of members and our communities through our Living Health model while maintaining financial strength and stability," the Pittsburgh-based insurer said.

Highmark said that it is focused on building the "workforce of the future," with investments in areas like AI and nursing, and emphasized that while it has laid off workers this year, it's also hiring.

Kaiser Permanente filed regulatory notices outlining plans to lay off 76 California employees by June 21.

None of the employees are represented by a union, and many hold IT and marketing roles within the system. A representative of the organization has told media that it will be providing severance and career support services for those affected.

The layoffs are the latest wave of reductions at Kaiser Permanente, which has now laid off roughly 350 workers since last November. These have largely affected IT and administrative positions.