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Jefferson is laying off about 1%, or roughly 600 to 700, of its employees this week

The layoff of 600 to 700 people is the second round of job cuts this year at Jefferson Health, which includes Lehigh Valley Health Network.

Jefferson Health is laying off about 1% of its 65,000 workers as an effort to become more efficient after a series of acquisitions over the last decade. The photo shows part of the sign atop Jefferson Center, the nonprofit's headquarters, 1101 Market St., in Center City.
Jefferson Health is laying off about 1% of its 65,000 workers as an effort to become more efficient after a series of acquisitions over the last decade. The photo shows part of the sign atop Jefferson Center, the nonprofit's headquarters, 1101 Market St., in Center City.Read moreTom Gralish / Staff Photographer

Thomas Jefferson University laid off about 1%, or between 600 and 700, of its 65,000 employees Wednesday, as it contends with persistent financial pressures in healthcare and tries to streamline its health system that grew rapidly through acquisitions since 2015, the Philadelphia nonprofit said.

The move came less than two months after Jefferson reported a $195 million operating loss on $15.8 billion in revenue for the year that ended June 30. Officials attributed $170 million of the loss to Jefferson Health Plans, its insurance subsidiary acquired in 2021.

Fitch Ratings this week lowered its outlook on the system’s finances to negative from stable, noting Jefferson’s increased operating loss in fiscal 2025 compared to last year.

No details were available on what kinds of positions Jefferson is cutting this week. The layoffs are hitting the entire system, which has included Lehigh Valley Health Network since August 2024. That acquisition gave Jefferson 32 hospitals stretching from South Jersey to near Scranton.

Jefferson said the layoffs are part of a strategy to integrate operations and to expand its presence in communities between Philadelphia and the Lehigh Valley. That’s an area where key competitors, the University of Pennsylvania Health System and St. Luke’s University Health Care, recently made acquisitions.

“To sustain our mission and continue serving our communities, we must take thoughtful, strategic actions to align our operations for the future,” Jefferson CEO Joseph G. Cacchione said in a statement.

“While these decisions are never easy, they are necessary to ensure Jefferson remains strong and able to invest in expanding access to care, advancing innovation, and supporting those who rely on us most,” he said.

The new job cuts follow Jefferson’s elimination of 171 back-office jobs in March. In 2023, Jefferson cut about 400 jobs, mostly corporate and administrative positions as well as vacant jobs, as part of a plan to trim $300 million in annual costs. Lehigh Valley Health laid off about 100 people in January.

Other local health systems have also cut jobs this year.

Main Line Health laid off 200 administrative and management staff members in January. That amounted to 1.5% of the total workforce. Those cuts cost the system $8.6 million, according to Main Line’s latest audited financial statement, and were expected to save it $30 million annually.

In March, the University of Pennsylvania Health System eliminated about 300 positions, including roughly 100 that were vacant. That amounted to about half a percent of the system’s 49,000 employees, Penn said at the time. The cuts were expected to save $40 million to $45 million annually.