Over 1,000 UPMC Employees Have Been Laid Off Due To Layoffs

(CTN News) – UPMC, a Pittsburgh-based health care giant, announced Wednesday afternoon layoffs of at least 1,000 employees due to post-pandemic challenges.

Paul Wood, vice president and chief communications officer at UPMC, said the reductions would affect just over 1% of the organization’s more than 100,000 employees.

As the health care industry continues to adjust to the realities of a still-evolving, post-pandemic marketplace, Wood stated in a statement. As a result of these challenges and opportunities, UPMC is dedicated to providing exceptional care to patients, employees, members and the community as a whole.

The majority of layoffs occur among non-clinical, non-client facing administrative staff through attrition, closing of open positions, elimination of redundancies, and other measures.

There is no change in UPMC’s investments in communities, facilities, clinical care, research, growth, or benefits as a result of the “realignment”.

An enhanced severance package and benefits coverage will be provided to the affected employees.

There was no indication from UPMC spokespeople as to exactly how many people would be laid off, or in what departments. In addition, their response did not provide specific details regarding how many layoffs will occur through attrition or by closing open positions, or when the layoffs will be implemented.

A total of more than 5,000 physicians are employed by the health care system in its 40 hospitals and 800 doctors’ offices and outpatient facilities. The company reported an operating loss of $198 million for 2023, compared with an operating income of $162 million the previous year. In 2023, total operating revenues reached $27.7 billion, up from 25.5 billion in 2022.

UPMC reported operating losses in November due to increases in labor costs and supply markets, increased medical claims as more patients sought care, pharmaceutical expenses, and litigation settlements.

Losses of this nature are not limited to UPMC. Between January 1, 2023, and December 31, 2023, Independence Health System, the health system formed by the merger of Excela and Butler, experienced operational losses of $74.1 million.

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