Jefferson Health, one of the largest nonprofit health systems in the region, has announced plans to reduce its workforce at Jefferson Cherry Hill Hospital as part of a broader strategic initiative. In a filing with the New Jersey Department of Labor & Workforce Development, the Philadelphia-based system indicated that 108 positions are expected to be eliminated by January 13, 2026.
The planned reductions are part of a targeted effort affecting over 600 employees systemwide, representing roughly 1% of Jefferson Health’s total workforce of 65,000. The Cherry Hill hospital is the focal point of these layoffs, which come in the wake of nearly $200 million in operating losses reported for the latest fiscal year.
Jefferson Health operates 32 hospitals and more than 700 outpatient facilities across eastern Pennsylvania and South Jersey, including local hospitals in Stratford and Washington Township, as well as multiple outpatient practices and Sidney Kimmel Comprehensive Cancer Care sites. The system’s reach and scale make it a cornerstone of regional health care, serving thousands of patients annually.
The workforce reductions follow the August 2024 merger between Jefferson Health and Lehigh Valley Health Network, which created one of the 15 largest health care systems in the United States. The merger aimed to expand patient access, improve health equity, enhance academic research and training, and increase financial efficiency through resource sharing.
In a statement, Jefferson Health CEO Joseph Cacchione acknowledged the difficult nature of the decision, citing broader financial challenges faced by the health care and higher education sectors. “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,” Cacchione said. He emphasized that these measures are necessary to ensure the health system remains strong, capable of investing in expanded care access, advancing medical innovation, and supporting patients who depend on its services.
The announcement underscores ongoing financial pressures in the health care sector, even for large, well-established systems. Jefferson Health remains committed to maintaining high-quality patient care while navigating these operational challenges. For ongoing updates and resources on health and wellness in New Jersey, visit Explore New Jersey Health & Wellness.
