UCSF Health on Wednesday said it is laying off 200 workers, cited rising operational costs and declining reimbursements for medical services as key drivers behind the decision. Sundry Photography/Getty Images

UCSF Health will eliminate approximately 200 positions across its network, officials said Wednesday, citing “serious financial challenges” and the need to safeguard long-term patient care.

The layoffs, which represent about 1% of the organization’s workforce, span part-time and full-time roles, with roughly half of the affected full-time employees holding management positions, UCSF Health said in a statement to the Chronicle.

Staff were notified this week and given 60 days’ notice, officials said. They are not required to report to work during that period but may use the time to focus on transition-related matters.

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“While these roles represent about 1% of our workforce, we recognize they are more than just positions — they are people who have given their time, skill, and heart to UCSF Health,” the statement read. “We are deeply grateful for their contributions.”

Impacted employees will receive full University of California benefits, including severance and career transition support. Severance packages will vary depending on tenure.

UCSF cited rising operational costs and declining reimbursements for medical services as key drivers behind the decision. “

“Like many health systems across the country, UCSF Health has experienced rising costs of operations while facing diminished reimbursements for services,” the statement said. “While this is a difficult decision, it was necessary to maintain financial stability and continue to deliver the many vital healthcare services we provide in San Francisco and across the Bay Area.”

SFGATE first reported the job cuts. (SFGATE and the San Francisco Chronicle are both owned by Hearst but operate independently.)

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The layoffs come amid growing labor unrest across the UC health system.

In April, as many as 20,000 unionized health care workers held a one-day strike across all University of California campuses and medical centers — the third such action this year.

The strike was in response to a UC-wide hiring freeze announced in March. Union leaders say the freeze is exacerbating already long patient wait times and increasing workloads for an already strained workforce.

“These changes are about safeguarding our ability to provide high-quality care — for the patients and communities who count on us — well into the future,” UCSF said.

Contract negotiations between the unions and the University of California have been ongoing since June 2024. Union leaders have accused the university of bargaining in bad faith and failing to address critical issues, including staffing shortages and rising health care costs for employees.

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UC officials say they’ve made good-faith offers, including wage increases, expanded leave benefits and lower premiums for lower-wage workers.

About a quarter of those affected by the layoffs announced Wednesday worked part-time, and roughly half of the full-time roles were in management. All impacted employees will receive full UC benefits, including severance packages and career transition assistance.