Are health system IT layoffs slowing down?

Hospitals and health systems are continuing to cut IT jobs amid financial and operational pressures, but data suggest the pace may be slowing compared with last year.

According to Becker’s reporting, four major health systems announced IT-related layoffs in 2025, totaling roughly 510 positions.

Burlington, Vt.-based University of Vermont Health Network eliminated 146 vacant and full-time roles in July, primarily in its shared services team, which includes IT, finance, registration, communications and human resources.

Bryn Mawr, Pa.-based Main Line Health cut about 200 administrative and management positions in January, affecting IT, finance, human resources, revenue cycle and accounting.

Oakland, Calif.-based Kaiser Permanente cut 64 California jobs in March, primarily in IT and business functions.

Tacoma, Wash.-based Virginia Mason Franciscan Health reported in June that it would eliminate more than 100 jobs in virtual care services as part of a broader transition of administrative functions.

By comparison, Becker’s reported roughly 564 IT-related layoffs in 2024 among multiple health systems, including Kaiser Permanente in Oakland, Calif., Winston-Salem, N.C.-based Novant Health and West Orange, N.J.-based RWJBarnabas Health. That year included several multi-round cuts and outsourcing initiatives.

In a Becker’s story on predictions for health system IT layoffs in 2025, Joy Oh, chief information and digital transformation officer of The Christ Hospital Health Network in Cincinnati, said she expected organizations to move away from cutting staff across the board.

“While overall IT staffing levels may not change much, the mix of skills and capabilities desired may change,” she said, noting that demand for AI and automation support continues to grow even as interest in cloud and other digital innovation wanes.

The post Are health system IT layoffs slowing down? appeared first on Becker’s Hospital Review | Healthcare News & Analysis.