Jefferson Health to lay off 400 positions this week, part of plan to increase profitability

The Philadelphia Inquirer reported that the 18-hospital not-for-profit system Jefferson Health is laying off about 400 positions this week, which includes an uncertain number of jobs in its Elkins Park, Willow Grove and Abington branches.

The cuts are expected to help reduce costs by $300 million and are concentrated in corporate and administrative positions, Jefferson CEO Joseph G. Cacchione said in a statement emailed to The Inquirer.

Jefferson’s health system currently employs 42,000 people. From 2015 through 2021, the system grew from three to 18 hospitals which came with higher costs for labor, pharmaceuticals, and supplies.

As such, the system has operated at a loss for the last four years.

“One of the reasons we are at an inflection point now is that we have never rationalized the size of our workforce through four significant mergers,” Cacchione said in a memo to Jefferson employees.

Jefferson’s Einstein Medical Center in Elkins Park closed its emergency department on June 30. At this time, Jefferson has not specified which or how many positions are to be cut from the remaining facilities in our area.

For the full story by The Inquirer, you can click here.

For all the latest news, follow us on Facebook or sign up for Glenside Local’s “Daily Buzz” newsletter here.