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PeaceHealth Announces Layoffs at Pacific Northwest Hospitals Amid Rising Operational Costs

by Tonya McPhearson
May 26, 2025
in Community
PeaceHealth Announces Layoffs at Pacific Northwest Hospitals Amid Rising Operational Costs
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SPRINGFIELD, Ore. — PeaceHealth has announced layoffs impacting employees at two major hospitals in the Pacific Northwest, including PeaceHealth Sacred Heart RiverBend in Springfield and PeaceHealth Southwest Medical Center in Vancouver, Washington.

In an internal email sent to staff Thursday, PeaceHealth leadership cited rising operational costs and the need to improve core operating performance as the primary reasons for the reduction in workforce. Approximately 1% of PeaceHealth’s employees were affected, with those impacted notified the same day. The healthcare provider also announced a hiring freeze through 2025, except for clinical and essential operational roles.

PeaceHealth is offering transitional support to affected employees and encouraging them to apply for other open positions within the organization. The provider emphasized that no additional layoffs are currently planned.

The move has sparked concern among healthcare workers and unions. The Oregon Nurses Association (ONA), which represents some of the impacted employees, released a statement expressing worries about the potential strain on staff and patient care.

“We are deeply concerned about how PeaceHealth’s job cuts will impact local patients and healthcare providers,” the ONA said. “Cutting frontline caregivers at PeaceHealth Sacred Heart RiverBend would strain workers who are already stretched thin. PeaceHealth must be open and honest with the public about its plans and partner with local nurses and healthcare providers to ensure caregivers and community members have a voice in our healthcare and are treated with compassion and respect.”

PeaceHealth responded Friday afternoon, framing the layoffs as part of a broader strategy to adapt to the changing healthcare landscape.

“PeaceHealth is actively responding to the significant challenges faced by healthcare organizations across the U.S. As always, we are adjusting operations and services to reflect changes in our communities and ensure we are being responsible to our healing Mission into the future,” the company said in a statement. “Through these transitions, we remain dedicated to safe, quality care for our patients.”

Details remain scarce regarding the exact number of positions cut at each hospital or which departments were most affected. Union representatives say they are continuing to gather information and advocate for greater transparency and collaboration moving forward.

PeaceHealth has served the region for over 135 years and operates multiple facilities across Oregon, Washington, and Alaska.

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