Dozens face layoffs at Lucile Packard Children’s Hospital

Citing financial challenges and economic uncertainty, the Lucile Packard Children’s Hospital is preparing to reduce its workforce by 87 positions in December, according to a notification that the Palo Alto medical institution filed with the state this week.

The hospital at 725 Welch Road submitted on Oct. 10 a notice with the state Department of Economic Development listing the 87 positions that will be eliminated by Dec. 12, 2025. According to an accompanying letter from N. Christopher Comma, vice president for human resources at the hospital, the employees will remain on the payroll with benefits until that time.

“The hospital continues to operate and is not closing as a result of these layoffs,” Comma wrote.

The vast majority of the 87 positions that are being eliminated are non-unionized positions, though the list also includes 13 positions that are represented by the Service Employees International Union and six that are represented by the Committee for Recognition of Nursing Achievement, the union that represents hospital nurses.

The positions include clinical pharmacists, case managers, application architects, administrative assistants, housekeeping specialists, food service workers, clinical pharmacists and a chaplain, according to the list provided by the hospital.

The children’s hospital, which is affiliated with Stanford Health Care, is one of many medical institutions across the nation that are facing financial pressure as a result of recently enacted federal policies and legislation, most notably the “One Big Beautiful Bill.” In Santa Clara County, officials are projecting an annual loss of about $1 billion in revenues because of the recent federal actions.

“Ongoing economic uncertainty in 2025 has created serious operational and financial challenges for academic medical institutions,” Comma wrote in the letter. “At Stanford Children’s, anticipated changes in regulatory headwinds are expected to have significant budgetary consequences.

“These developments, along with rising operational costs, shifts in funding sources, and programmatic changes, have resulted in this workforce reduction.”

In addition to the cuts at the hospital, Stanford University has also been reducing the workforce on its academic campus. Earlier this year, the university announced that it is laying off 363 employees, a workforce reduction that took effect on Sept. 30, according to documents filed with the state.

Comma noted in his letter that affected employees who are subject to permanent layoffs will be provided with severance benefits, continued health insurance and career transition services