Photo: Courtesy Jefferson Health
Philadelphia-based Jefferson Health is laying off 1% of its workforce due to struggling financial performance.
The job cuts will affect an estimated 600 to 700 employees. The health system has more than 55,000 employees.
Layoffs include 108 employees at Jefferson Cherry Hill Hospital in New Jersey, according to a WARN notice filed in that state. The layoffs are expected in January 2026.
Jefferson Health has cited "significant financial headwinds" as the reason for the layoffs. It posted a $196 million operating loss for its 2025 fiscal year.
The loss was reportedly driven by increasing costs for its insurance business, driven by rising costs for GLP-1 drugs and medical expenses. This is the second time this year that Jefferson has planned for staff reductions. In January, the health system outsourced 171 back-office jobs.
In May 2024, Jefferson Health signed a definitive agreement to merge with Lehigh Valley Health Network to create an integrated academic health system of 32 hospitals.
Prior to the merger, Jefferson Health, which is under the umbrella of Thomas Jefferson University, had a network of 18 hospitals in the Delaware Valley area of Pennsylvania and New Jersey.
It is the largest health system in the Philadelphia area, having previously merged with the Einstein Healthcare Network.
Email the writer: SMorse@himss.org