Mass Layoffs at Providence Spark Outrage From Oregon Nurses Union

Following Providence Health’s announcement that it is cutting 600 full-time-equivalent positions, the not-for-profit health system operating across seven Western states, the Oregon Nurses Association (ONA) condemned the layoffs, particularly those affecting rural communities.

Providence Health To Lay Off 600 Workers

After Providence Hospital Group, which employs 25,000 Oregonians, indicated in April that it was facing a dire financial crisis following the Trump administration’s imposition of federal budget cuts and tariff hikes that could reduce the hospital group’s income by $500 million.

Short payments and delays from insurance companies, combined with rising supply and labor costs, as well as new labor legislation, culminated in $1.5 billion in cutbacks in Medicare and Medicaid funding.

In a move aimed at ensuring long-term financial sustainability, Providence announced the layoffs earlier this week as part of a broader restructuring effort.

The layoffs primarily affect non-clinical and administrative roles but also include some patient-care positions. With a total staff complement of about 125,000 people, Providence is seeking to redeploy affected individuals into one of over 5,000 open positions across its network.

ONA Responds To Providence Layoffs

However, the Oregon Nurses Association (ONA) condemned the layoffs in a strongly worded statement, accusing Providence of prioritizing profits over patient care and misrepresenting the effects of Oregon’s staffing legislation.

The union says the move is part of a continued harmful disinvestment in rural healthcare in Oregon.

The ONA also challenged Providence for attributing the cuts in part to Oregon’s historic 2023 safe staffing law, which mandates safer nurse-to-patient ratios in hospitals. It pointed out that the law does not apply to clinics where some of the layoffs are planned.

Dr. Darryl Elmouchi, Providence’s chief operating officer, indicated that the group does not take decisions like this lightly. He said they “recognize that behind every role is a person, colleague, friend, and caregiver whose contributions have helped carry out the Providence Mission.”