Children’s Hospital in California laying off 439 employees

CALIFORNIA – Children’s Hospital Los Angeles (CHLA) notified the California Employment Development Department that it will lay off 439 employees, effective October 28, 2025.

The hospital said the adjustment impacts 5.8% of its workforce to support long-term sustainability and mission alignment amid financial challenges.

CHLA CEO Paul S. Viviano called the decision a difficult and deeply painful moment for the entire team.

“And it became increasingly clear that reductions to both team member and management roles were necessary to ensure CHLA can continue to survive in this uncertain climate to provide our young patients and their families with the quality care that they need and deserve,” Viviano said.

The layoffs follow years of cost-saving measures, including a hiring freeze, canceled open positions, and reduced hospital supply expenses.

They also follow a review of the hospital’s operations and finances, which have faced ongoing pressures, including Medi-Cal’s cuts to reimbursements for care of California’s sickest children.

70 hospitals have cut jobs in 2025

The workforce reductions are part of a broader trend in the U.S. healthcare sector. In 2025, over 70 hospitals and health systems have announced job cuts due to financial and operational challenges.

CHLA’s reorganization will eliminate or consolidate positions, affecting about 253 team members across management, support, administrative, and clinical roles.

Another 186 affected team members will have the option to transfer to revised roles created through the hospital-wide restructuring.

Team members will continue to receive pay and benefits until October 28, in addition to severance pay in alignment with CHLA policy.

WARN Act allows time to prepare

Under the federal WARN Act, CHLA is required to provide 60 days’ notice for mass layoffs or closures affecting a significant number of employees. This gives CHLA staff time to prepare and plan next steps.