PeaceHealth to Eliminate 1% of Workforce, Pause Nonclinical Hiring

Another health system is going down the road of major layoffs and citing financial headwinds for the decision.

In the face of financial uncertainty, PeaceHealth is taking a significant step to slim down its workforce.

The Pacific Northwest-based health system, which operates in Washington, Oregon, and Alaska, said that it plans to cut 1% of its workforce and freeze nonclinical hiring throughout 2025. PeaceHealth did not offer details on which roles would be affected or when the layoffs would go into effect. The hospital operator has 16,000 employees.

It’s the latest move by a health system to trim its workforce to alleviate financial constraints amid a challenging environment that is making it hard for organizations to operate profitably.

"After months of discernment, financial analysis and a thorough review of the dynamic healthcare market, we are making a 1% reduction in our workforce, including eliminating some caregiver roles and closing some open positions," A PeaceHealth spokesperson said in a statement. "In line with our value of respect, we offer comprehensive transitional support consistent with our policies and practices to all impacted caregivers. Where possible, we are working to match qualified caregivers with open clinical roles across PeaceHealth."

The last time PeaceHealth underwent a round of layoffs was in 2023, when around 250 workers were let go.

The Oregon Nurses Association (ONA), which represents some of PeaceHealth’s employees, has stood in opposition to the cuts and expressed concern that the most recent round will harm workers and the public.

“We are deeply concerned about how PeaceHealth’s job cuts will impact local patients and healthcare providers,” Kevin Mealy, a spokesperson for the ONA, in a statement. “Cutting frontline caregivers at PeaceHealth Sacred Heart RiverBend would strain workers who are already stretched thin. PeaceHealth must be open and honest with the public about its plans and partner with local nurses and healthcare providers to ensure caregivers and community members have a voice in our healthcare and are treated with compassion and respect.”

Many health systems have recently resorted to layoffs or hiring freezes to save on rising expenses.

The reductions have mostly been focused on nonclinical roles, with organizations still working to strengthen their base of providers through recruitment and retention efforts.

The cuts have often reached management and administrative levels as health systems opt to slash concentrated salaries over position volume.