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Jefferson Health Cuts About 1% of Staff in Latest Systemwide Layoffs

The move follows a $195 million fiscal 2025 operating loss largely tied to its insurance unit.

Overview

  • Jefferson said roughly 600 to 700 employees out of about 65,000 were notified this week as part of a systemwide reduction.
  • Executives attributed about $170 million of the reported operating loss to Jefferson Health Plans, acquired in 2021.
  • Fitch Ratings shifted the health system’s outlook to negative this week and projected a measured recovery over the next 24 to 36 months.
  • The cuts are framed as part of a broader integration effort following rapid expansion, including the August 2024 merger with Lehigh Valley Health Network that created a 32‑hospital system.
  • Leadership has not specified which roles are affected, and the latest reductions follow 171 back‑office cuts in March 2025 and about 400 job eliminations in 2023.