Jefferson Health plans to initiate a round of layoffs in New Jersey as part of a targeted workforce reduction.

In a filing with the state Department of Labor & Workforce Development, the Philadelphia-based nonprofit health system said it expects to cut 108 positions by Jan. 13, 2026, at Jefferson Cherry Hill Hospital in Cherry Hill.

Considered one of the largest networks in its home state, Jefferson Health runs 32 hospitals and over 700 outpatient locations across eastern Pennsylvania and South Jersey.

Besides Cherry Hill, its local footprint includes hospitals in Stratford and Washington Township. It also runs several practices and outpatient facilities, as well as Sidney Kimmel Comprehensive Cancer Care sites.

The layoffs will affect over 600 employees systemwide. Fierce Healthcare noted it is about 1% of Jefferson’s total workforce of 65,000.

The move comes a few months after Jefferson Health posted a nearly $200 million operating loss for its latest fiscal year, the trade publication reported.

Strategic action

In August 2024, Jefferson Health merged with Lehigh Valley Health Network to create one of the 15 largest health care networks in the U.S.

At the time, Jefferson Health and LVHN said they sought to expand access to care, improve health equity, and strengthen academic research and training. The merger also aimed to improve financial efficiency by allowing the systems to share resources.

While these decisions are never easy, they are necessary to ensure Jefferson remains strong and able to invest in expanding access to care, advancing innovation, and supporting those who rely on us most.
– Joseph Cacchione, Jefferson Health CEO

In a statement to NJBIZ, Jefferson Health CEO Joseph Cacchione said, “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.”

“While these decisions are never easy, they are necessary to ensure Jefferson remains strong and able to invest in expanding access to care, advancing innovation, and supporting those who rely on us most,” he added.