Pittsburgh-based health care titan UPMC has announced significant layoffs affecting at least 1,000 employees on Wednesday afternoon, attributing the decision to post-pandemic challenges.
According to Paul Wood, UPMC’s vice president and chief communications officer, these reductions will affect just over 1% of the expansive UPMC workforce, which boasts more than 100,000 members systemwide.
Wood emphasized that the entire health care sector is grappling with the shifting landscape of a post-pandemic economy. He underscored UPMC’s commitment to adapting to these challenges while upholding its core mission of delivering exceptional care to patients, employees, members, and communities.
The layoffs primarily target non-clinical, administrative staff who do not directly engage with members. Wood outlined that the workforce reduction strategy includes attrition, closing of open positions, elimination of redundancies, and other measures.
Importantly, Wood assured that this “realignment” will not detract from UPMC’s ongoing investments in communities, facilities, clinical care, research, growth, or benefits. Additionally, UPMC is offering enhanced severance pay and extended benefits coverage to affected employees.
Despite these layoffs, UPMC remains a formidable force in the health care landscape, employing over 5,000 physicians across its network of 40 hospitals and 800 doctors’ offices and outpatient sites. However, the health care giant reported a $198 million operating loss for 2023, a significant downturn from the previous year’s operating income of $162 million. Nevertheless, total operating revenues for 2023 reached $27.7 billion, marking a notable increase from $25.5 billion in 2022