Jefferson Health announced that it is laying off between 600 and 700 employees this week as part of “targeted workforce reductions.”

The 32-hospital, $15 billion health system stretching from Eastern Pennsylvania into South Jersey, took on a $196 million operating loss in fiscal year 2025. CEO Dr. Joseph Cacchione said that the health care system has a “three-year journey” to address its deficit. 

In March, the health system laid off 171 employees, many of whom report into offices located within the Philadelphia, Fort Washington, Willow Grove, Norristown, East Norriton and Abington areas, and in Cherry Hill, New Jersey. In 2023, Jefferson cut about 400 jobs.

“Like many organizations in health care and higher education, we are facing significant financial headwinds. To sustain our mission and continue serving our communities, we must take thoughtful, strategic actions to align our operations for the future,” Dr. Cacchione said in a statement. “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.”

No details are available regarding the types of positions Jefferson is cutting, though the layoffs are hitting the entire system, The Philadelphia Inquirer said.