UPMC is laying off about 1,000 employees, or slightly more than 1% of its workforce.
The layoffs are effective immediately, a spokesperson said Wednesday.
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The cuts mostly affect non-clinical, non-member-facing and administrative employees, Paul Wood, chief communications officer at UPMC, said in a statement.
Wood said the layoffs are due to a challenging post-pandemic operating environment and will help ensure the health system's future success. Affected employees will be offered severance pay and benefits coverage, he added. Wood did not specify the amount of severance pay or length of the benefits coverage period.
Pittsburgh-based UPMC operates 40 hospitals and 800 doctor's offices and outpatient sites in Pennsylvania, New York, Maryland and some international locations. Its insurance division covers more than 4 million members.
The nonprofit health system reported a $31 million net loss in 2023, compared with a more than $1 billion loss the prior year. Operating losses for 2023 totaled $198 million.
In October, UPMC and Pennsylvania's Washington Health System signed a definitive agreement to merge. The deal is subject to regulatory approval. The organizations did not provide a closing date.
