SEATTLE — The largest healthcare system in Western Washington announced layoffs slated for 2026 and the closure of some clinical operations amid restructuring efforts.
Providence Swedish posted its plans to reduce its workforce across Central Puget Sound during “operational and financial challenges,” impacting Swedish First Hill, Cherry Hill, Issaquah, and Ballard hospital campuses and Swedish Medical Group.
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The healthcare provider estimates the cuts will impact 296 positions, including “non-represented caregivers, represented (union) roles, and open positions that will remain unfilled. The adjustments affect a combination of frontline and clinical, administrative, support, and management positions across more than 100 departments.”
That represents 3.8% of the system’s workforce, and those employees are expected to move out of the organization in the new year.
“These are tough and complex – but necessary – decisions to address the significant economic pressures facing health care today,” Elizabeth Wako, M.D., president and CEO of Swedish Health Services, wrote in a press release. “While layoffs are never our first choice, they are needed to sustain this organization.”
Providence Swedish highlighted ongoing financial strains felt by hospital systems across the country, from state and federal Medicaid cuts to state and city business occupation taxes, commercial insurer denials, and a drop in procedural volumes.
The healthcare provider said it will offer impacted caregivers resources for job placement and career counseling.
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Some operational changes include the closure of the Credena pharmacy at Cherry Hill starting Nov. 24, and the Swedish Weight Loss Outpatient Clinic at Issaquah on Dec. 12.
Providence Swedish noted the workforce and operational reduction will not stop the ongoing North Patient Tower construction at First Hill that will “replace and modernize older facilities and ensure service sustainability,” according to the hospital system’s blog.
“These reductions are part of an ongoing evaluation process,” Dr. Wako wrote. “We remain focused on our mission and values, making thoughtful decisions to navigate financial pressures responsibly. Our organization’s strength lies in its dedicated people, and together, we will emerge stronger and ready to meet future challenges.”
Providence Swedish is comprised of eight hospitals and 244 clinics.