The parent company of the Lehigh Valley Health Network plans to lay off hundreds of its workers, its CEO confirmed.
Roughly 600 to 700 cuts, about 1% of Jefferson Health’s workforce, were recently notified of the layoffs. It’s unclear when the reductions will go into effect and the specific locations and departments impacted.
Lehigh Valley Hospital has locations in Northampton and Lehigh counties, as well as in Carbon, Monroe and Luzerne counties.
Jamie L. Stover, manager of public relations for the Lehigh Valley Health Network, didn’t immediately respond Thursday morning to a request for more details.
Jefferson Health CEO Joseph Cacchione cited monetary challenges of the health system as the reason behind the layoffs.
“Like many organizations in health care and higher education, we are facing significant financial headwinds,” Cacchione 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,” Cacchione added.
Roughly 65,000 people currently are employed with Jefferson Health, according to the company’s LinkedIn profile. Employees include faculty, clinicians and staff across eastern Pennsylvania and southern New Jersey.
Philadelphia-based Jefferson completed its merger with the Lehigh Valley Health Network in August 2024. That action came after the Lehigh Valley Health Network and Jefferson Health in December 2023 announced they had signed a letter of intent to combine.
The new health system now is among the 25 largest in the country. The merged systems include a national research university, as well as 30 hospitals and more than 700 outpatient sites.
Jefferson reported a $195-million operating loss for the last fiscal year, according to multiple published reports, including the Philadelphia Inquirer.
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