Jefferson Healthcare, a regional hospital system with locations in Philadelphia, New Jersey and the Lehigh Valley, announced it would cut approximately 1% of its workforce of more than 55,000 employees.
“Like many organizations in health care and higher education, we are facing significant financial headwinds,” Dr. Joseph G. Cacchione, chief executive officer of Jefferson Health, said in a statement. “To sustain our mission and continue serving our communities, we must take thoughtful, strategic actions to align our operations for the future.
“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.”
The total number of employees impacted by the layoffs could exceed 550. At least 108 employees in Cherry Hill are expected to be impacted by Jan. 13, 2026, according to a WARN noticed filed in New Jersey.
The latest round of layoffs at the once rapidly growing health system follow an earlier announcement in January that 171 back-office employees hired through an outsourced company would be laid off by March 10.
In August, Jefferson Health announced a $195.5 million operating loss for the fiscal year ending on June 30, primarily due to a $169.9 million deficit in hospital system’s insurance business, according to the Philadelphia Inquirer.
The Inquirer reported that the company’s operating losses were an enormous swing from the previous year when Jefferson reported a $1.3 million operating profit.
Jefferson Health includes Thomas Jefferson University, which includes a medical school, nursing education programs and other health professions programs.
Jefferson Hospital was established in 1825 at Jefferson Medical College in Philadelphia. Today, the health system has hospitals in Camden and Gloucester counties in New Jersey, as well as locations in Bucks, Carbon, Lehigh, Monroe, Montgomery, Northampton and Philadelphia counties in Pennsylvania.
The non-profit hospital system has been rapidly expanding since 2015 when it acquired Abington Health.
Since then, Jefferson merged with Aria Health in 2016, acquired the Kennedy Health system in New Jersey in 2017 and Magee Rehabilitation Hospital in 2018.
Over the past four years, Jefferson acquired Einstein health Network in 2021 and merged with Lehigh Valley Health Network in 2024.
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