UPMC will lay off 100 employees and eliminate 200 vacant positions as part of its ongoing restructuring efforts. In a statement confirming the plans to WESA, UPMC said it was a step to eliminate redundancies in its workforce. “Targeted adjustments are frequently made to improve organizational efficiencies and eliminate redundancies,” a UPMC spokesperson said.
“About 200 unfilled positions and about 100 active employees throughout the 100,000-person UPMC system may be affected.” UPMC declined to specify what positions, departments or hospitals would be impacted by the layoffs, but they’re expected to affect about 0.01% of the system’s workforce.
The announcement comes months after a much larger round of layoffs cut 1,000 jobs from the system in April, reflecting about 1% of UPMC’s workforce. Those layoffs included positions in the health care system, insurance services and other business units. UPMC also closed vacant positions at that time.
The layoffs come amid a changing financial landscape in health care and health insurance marked by drying up federal pandemic aid coupled with rising labor and supplies costs. UPMC’s revenue was $27.7 billion in 2023, but it also saw nearly $200 million in operating losses last year with a lower operating margin.
The financial picture doesn’t appear to be improving so far this year. The company reported a $313 million operating loss in the first six months of 2024, according to financial records . UPMC posted a $14.
5 million operating gain during the same time last year. The recent layoffs mark the first system-wide reductions since the 2008 financial crisis when a much smaller UPMC laid off hundreds of employees. The system now comprises health care providers across Pennsylvania as well as Maryland and New York.
UPMC did not provide a geographical breakdown of this week’s layoffs..
Health
UPMC confirms plans to layoff 100 employees as staff reductions continue
UPMC has confirmed plans to lay off about 100 employees and eliminate 200 vacant positions. The layoffs come after the health system laid off 1,000 employees this spring.