Children’s Hospital Los Angeles to Cut 439 Jobs Amid Financial Strain
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Effective October 28, Children’s Hospital Los Angeles (CHLA) will lay off 5.8% of its staff, affecting 439 positions.
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The cuts are part of a strategic plan to address financial strain and support long-term sustainability.
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CHLA leadership says the decision was driven by external pressures, including reduced Medi-Cal reimbursement rates.
Children’s Hospital Los Angeles (CHLA), California’s top-ranked pediatric hospital, is cutting 5.8% of its workforce, affecting 439 positions across the organization. The changes are part of a larger restructuring plan aimed at keeping the hospital financially stable while staying focused on its mission.
The layoffs follow several years of cost-saving measures and come amid declining Medi-Cal reimbursement for pediatric care—particularly for California’s sickest children.
Who’s Impacted?
The reductions span multiple departments and levels:
- 253 employees will be laid off, including those in clinical care, administration, support services, and management
- 186 employees will be offered transfers into newly restructured roles
- All impacted employees will continue receiving full pay and benefits through October 28
- Eligible team members will receive severance packages, per CHLA policy
Impacted employees were informed on August 28, and their roles will officially end in 60 days.
Why the Cuts Now?
Hospital leadership pointed to a combination of external financial pressures and the long-term effects of Medi-Cal's ongoing reimbursement reductions.
Despite multiple cost-cutting strategies in recent years—including:
- A hiring freeze
- Cancelled job openings in fully staffed units
- Efforts to reduce supply and purchasing costs
CHLA leadership said deeper action was needed.
“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,” said CEO Paul S. Viviano.
CHLA’s Commitment to Pediatric Care
Viviano acknowledged the emotional toll of the decision, calling it “a deeply painful moment” for the hospital’s staff. However, he emphasized the importance of long-term sustainability to ensure the hospital can continue providing world-class pediatric care.
“Children continue to need the specialized care that only Children’s Hospital Los Angeles can provide,” Viviano said. “And our patients deserve the strongest hospital possible for decades to come.”
Despite the staffing changes, CHLA remains focused on its core mission. The hospital is committed to advancing pediatric research, training the next generation of pediatric clinicians, and continuing to serve vulnerable children and families across the region.
About CHLA
CHLA is ranked the #1 children’s hospital in California and the Pacific region by U.S. News & World Report for 2024–25. It also houses the Saban Research Institute, one of the top 10 NIH-funded pediatric research centers in the country.
As an academic medical center, CHLA trains one of the largest pediatric residency programs in the U.S., making its stability especially important for both patient care and the next generation of pediatric providers.
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