Sharp HealthCare announces another reorganization affecting 260 workers
The workforce reduction will reduce the San Diego nonprofit's headcount by just under 1%, but follows last summer's elimination of 315 roles. Leadership attributed the decision to heightened expenses and policy changes at both the federal and state levels.
San Diego-based Sharp HealthCare has announced another round of workforce reductions, affecting approximately 260 employees. This marks the second wave of layoffs for the company in less than a year. Despite many employees being offered alternative positions, the reorganization will still see the company's headcount decrease by just under 1% from its roughly 22,000-person workforce.
Sharp HealthCare's president and CEO, Chris Howard, stated that the system would provide resources, career assistance, and opportunities for affected workers. However, specifics regarding other potential separation benefits, such as severance, were not immediately available. The previous round of cuts in June 2025 resulted in the elimination of 315 jobs and hours reductions.
Sharp HealthCare cited rising expenses for labor, supplies, and other unavoidable costs, along with stagnant pay rates from government programs, as well as policy changes impacting Medicaid enrollment and supplemental Medicaid payments, as contributing factors to the financial pressures that necessitated the layoffs. The organization, which is San Diego County's largest private employer, includes five acute care hospitals, five specialty hospitals, three affiliated medical groups, and a health plan.
The reorganization aims to position the company and its communities for sustainable care delivery by making changes to behavioral health care, select outpatient services, and certain Sharp systemwide and regional operations.
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