Seattle Children’s Health Care System confirmed this week that it will lay off 154 employees, representing about 1.5% of its workforce. The reductions will begin November 15 and primarily affect administrative staff and front-line lab and research positions. In addition, the hospital plans to eliminate 350 open roles, tightening its workforce further.
A spokesperson said the moves are tied to significant financial pressures, including “hundreds of millions of dollars in anticipated state and federal funding cuts.” Like many health systems across the country, Seattle Children’s is navigating a post-pandemic environment where federal support is receding while costs remain high. The hospital emphasized its focus on protecting patient care and sustaining critical research despite the cuts.
Seattle Children’s research enterprise has been a cornerstone of national innovation in pediatric medicine, but federal support has waned. To date in 2025, the organization has received $91 million in NIH research funding, down 24% compared to the full year 2024. In 2024, about 60% of Seattle Children’s research projects — from childhood cancer therapies to cystic fibrosis survival outcomes — were funded by federal grants.
The announcement follows recent turbulence in regional healthcare. Fred Hutchinson Cancer Center cut IT staff earlier this year, while Providence Health & Services and Virginia Mason Franciscan Health have each announced layoffs tied to rising costs and shifting reimbursement models.
Leadership transitions are also on the horizon. CEO Dr. Jeffrey Sperring confirmed earlier this month that he plans to step down by October 2026, after a decade at the helm. His tenure will end as the organization faces a more uncertain financial and regulatory landscape than at any time in recent memory.
These workforce reductions highlight a growing trend: even premier pediatric and research institutions are not immune to systemic pressures reshaping healthcare delivery in the Pacific Northwest and nationwide.
