Providence Swedish announces layoffs for nearly 300 staff in Seattle area

SEATTLE - Providence Swedish announced plans to reduce its workforce across central Puget Sound operations as the health system faces mounting financial and operational challenges.

The changes affect approximately 296 positions, or about 3.8% of its workforce in the region. The reductions span Swedish hospital campuses in First Hill, Cherry Hill, Issaquah, and Ballard, along with Swedish Medical Group clinics.

"These are tough and complex – but necessary – decisions to address the significant economic pressures facing health care today," said Elizabeth Wako, M.D., president and CEO of Swedish Health Services. "While layoffs are never our first choice, they are needed to sustain this organization."

Job cuts to impact clinical and administrative departments

Providence Swedish said the adjustments include a mix of filled and open positions that will remain unfilled. Both represented (union) and non-represented caregivers are affected.

The organization said the reductions touch more than 100 departments, including frontline and clinical staff, administrative roles, support services and management.

Affected employees will transition out of the organization in early 2026. Providence Swedish said it will offer job placement resources, career counseling, and access to its caregiver assistance program to help those impacted.

Closures planned in Issaquah and at Cherry Hill campus

In addition to the staffing changes, Providence Swedish will close the Credena pharmacy at Cherry Hill on Nov. 24 and the Swedish Weight Loss Outpatient Clinic in Issaquah on Dec. 12.

The organization emphasized these closures and workforce reductions are separate from the North Patient Tower project underway at the First Hill campus — a modernization effort to replace older facilities and maintain service capacity.

Providence Swedish faces multiple financial pressures

The health system said it is responding to several financial headwinds, including state and federal Medicaid cuts, higher costs tied to legislative policies, state and city business and occupation taxes, and commercial insurer denials.

Providence Swedish also said the recently passed federal H.R.1 (the One Big Beautiful Bill Act) will further affect safety-net programs, adding to the financial strain.

"Despite implementing effective plans over the past seven months, the organization must adapt swiftly to the ongoing uncertainties in health care," Providence Swedish said in a statement.

"These reductions are part of an ongoing evaluation process," Dr. Wako said. "We remain focused on our mission and values, making thoughtful decisions to navigate financial pressures responsibly. Our organization’s strength lies in its dedicated people, and together, we will emerge stronger and ready to meet future challenges."

Providence Swedish remains the region's largest health provider

Providence Swedish has served the Puget Sound region for more than a century. The two systems affiliated in 2012, forming the largest health care delivery network in Western Washington.

The not-for-profit system employs about 24,000 caregivers across eight hospitals and 244 clinics from Everett to Centralia. Providence Swedish provides more than $545 million in community benefit annually and offers care in specialties including cancer, cardiovascular health, neurosciences, orthopedics, digestive health, and women’s and children’s services.

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