Layoffs ,Providence announced additional workforce reductions across its operations in Washington and Oregon, following earlier rounds of cutbacks implemented this year.
At its nine-hospital Providence Swedish system in Washington, the organization plans to reduce approximately 296 positions across the Central Puget Sound region. The cuts represent 3.8% of Providence Swedish’s total workforce and include unfilled openings that will remain vacant and current union and non-union positions. More than 100 departments will be affected, spanning frontline and clinical, administrative, support, and management roles. The reductions are scheduled to take effect in early 2026.
Providence cited financial pressures tied to Medicaid costs, commercial insurer denials, local legislation and taxes, and declining procedural volumes. The announcement also noted that a pharmacy and an outpatient weight loss clinic will close before the end of the year. Elizabeth Wako, M.D., president and CEO of Swedish Health Services, stated, “These are tough and complex, but necessary, decisions to address the significant economic pressures facing health care today.” She also said layoffs are not the organization’s preferred option but are needed to sustain the system.
In Oregon, more than 150 employees have been notified that their positions are being eliminated, according to an announcement from Providence Oregon Chief Executive Jennifer Burrows. Most of the affected jobs are non-clinical and span acute care hospitals, the medical group, and the health plan. Burrows said the financial strain has been intensified by recent policy changes and regulatory pressures. She added that Providence will try to transition workers into other roles “where possible,” though some employees will leave the organization.
Both announcements said Providence will provide support services for those affected. The Swedish announcement referenced job placement, career counseling, and other resources available through its employee assistance program. The Oregon announcement said efforts would be made to transition employees when feasible.
The latest layoffs follow a restructuring announcement from June that reduced 600 full-time equivalent positions, plans announced in August to cut 128 jobs within Providence, Oregon, and layoffs at Providence Health Plan in May that affected about five dozen employees, as well as a hiring freeze.
Providence recently released quarterly financials showing a positive operating margin of 0.3% for the first time in years. President and CEO Erik Wexler said the multiyear turnaround “has taken a tremendous amount of hard work and decisive action from everyone across Providence St. Joseph Health, and that effort is starting to make a real difference.” Wexler and Chief Financial Officer Greg Hoffman also warned of additional financial challenges, including the effects of the One Big Beautiful Bill and its Medicaid cuts.
Across 2024, Providence reported nearly $31 billion in total operating revenues and a $644 million operating loss, a -2.1% operating margin. The organization employs more than 120,000 workers.
Providence Announces New Layoffs Across Washington and Oregon Amid Financial Pressures
The nonprofit health system Providence has announced a fresh wave of Layoffs across its operations in Washington and Oregon, citing mounting financial pressures as the primary reason. Fierce Healthcare+2Becker’s Hospital Review+2
In Washington, Providence’s Seattle‑area division (known as Providence Swedish) plans to eliminate roughly 296 positions across multiple hospital campuses and its medical group — representing about 3.8% of Swedish’s workforce. Positions to be cut or left unfilled include both union and non‑union roles, spanning frontline clinical staff, administrative personnel, support staff, and management across more than 100 departments. KIRO 7 News Seattle+2Becker’s Hospital Review+2 The changes are due to a combination of falling procedural volumes, increased insurer denials, rising costs tied to state and local legislation, and reductions in federal funding for Medicaid. Becker’s Hospital Review+2DOTmed+2
Simultaneously in Oregon, Providence is cutting “more than 150” positions, primarily non‑clinical roles across its hospitals, medical clinics, and insurance division. opb+1 Some of those laid off were members of its health‑plan staff, reflecting difficulties the insurer arm is facing after losing a significant number of customers earlier this year. opb+1
These new Layoffs come after a broader restructuring earlier in 2025. In June, Providence cut approximately 600 full‑time equivalent positions system‑wide, including administrative and some care roles — a move justified by “rising costs, declining reimbursement rates, and insurer payment denials.” DOTmed+1
According to Providence leadership, these difficult but necessary decisions aim to stabilize finances so the health system can continue delivering care. At the same time, Providence says it will offer support services to affected employees — including career counseling, job‑placement assistance, and efforts to reassign or redeploy staff where possible. Becker’s Hospital Review+2Fierce Healthcare+2
As Layoffs continue, there are growing concerns about the impact on care accessibility, staffing levels, and community health services — especially in regions already facing staffing shortages and strained resources.
