Seattle Children’s Hospital will eliminate 154 positions this fall, citing anticipated reductions in state and federal funding totaling millions of dollars over the coming years.
The layoffs represent approximately 1.5 percent of the hospital’s 10,261-person workforce, with 133 positions in administrative roles, 15 in patient-contact positions that don’t provide direct care, and six in direct patient care roles.
Hospital leadership announced the cuts in an internal email Tuesday, explaining that some departments will undergo restructuring while certain services face discontinuation or scaling back. Changes include delaying expansion plans at four regional sites, closing playrooms at regional clinics, and reducing administrative services by nearly 20 percent.
“We are making some difficult but necessary decisions to secure Children’s future and protect our ability to deliver compassionate care and life-saving research for the patients and families who need us,” a hospital spokesperson stated Wednesday.
The positions will be eliminated across multiple locations including Seattle, Bellevue, Everett, Federal Way, and Kennewick, according to the state Employment Security Department. Additionally, Seattle Children’s will eliminate approximately 350 open positions that remain unfilled.
Financial pressures stem from multiple sources, including reductions in Medicaid funding, National Institutes of Health research grants, and Washington’s safety net assessment program, which helps close gaps in hospitals’ Medicaid reimbursement rates. The hospital also faces insurance payment delays, increased labor and supply costs, and tax changes.
“Adapting during such a tumultuous time is challenging, but our team has weathered storms before and demonstrated our resilience,” leadership wrote in the staff email. “Children’s will continue to invest in people and programs to meet the needs of the communities we serve.”
This marks the second major layoff announcement in recent years for Seattle Children’s, which eliminated approximately 135 positions in 2023 during what officials called a “management restructure.” The previous cuts were attributed to COVID-19 pandemic financial losses, inflation, and economic uncertainty.
The healthcare industry has faced widespread financial challenges since the pandemic, with multiple local institutions implementing similar cost-cutting measures. Valley Medical Center in Renton laid off 101 nonclinical staff members in March and subsequently closed several outpatient clinics and inpatient units. Virginia Mason Franciscan Health eliminated more than 100 virtual care positions over the summer.
These reductions reflect broader healthcare system pressures as hospitals nationwide prepare for decreased Medicaid reimbursements and other federal funding losses that particularly impact safety-net providers serving vulnerable populations.
Seattle Children’s officials indicated that laid-off employees may apply for other positions within the hospital system, with weekly lists of available openings to be provided during the transition period.
