Full Breakdown
Mass General Brigham Begins New Round of Layoffs Amid Tight Operating Margins
By Drooid · · How we work
Core Event
The nonprofit health-care system Mass General Brigham (MGB) began laying off staff on Tuesday of last week, according to spokesperson Jessica Pastore. The system, which employs more than 80,000 workers, has not disclosed how many positions have been eliminated or are planned. Among those affected are several pediatricians at Mass Eye and Ear, who have been offered alternative roles within the network.
Background & Context
MGB’s financial pressure stems from an operating margin that has hovered near zero for several years. In fiscal 2025 the system reported operating income of $59 million—an operating margin of 0.3 percent—well below the roughly 2 percent median of peer academic medical centers such as Mayo Clinic, Cleveland Clinic and Johns Hopkins. The margin fell from 1 percent to below zero before improving in the second half of 2025. Executives have warned that the margin is insufficient to fund equipment upgrades, facility maintenance, and other quality-of-care investments.
The latest cuts follow a February–March 2025 reduction of about 1,500 positions and come as MGB negotiates with the Massachusetts Nurses Association, representing nearly 4,000 nurses, over cost-of-living adjustments and salary increases. External pressures include new Medicaid work-requirement policies and the “One Big Beautiful Bill Act,” which analysts say could increase the share of uninsured patients and further strain revenue.
Data & Statistics
- Workforce: > 80,000 employees
- Total margin FY 2025 (including investment income): $2.38 billion
- Operating revenue FY 2025: $22.8 billion
- Operating income FY 2025: $59 million (0.3 % margin)
- Target operating margin: 1.5 % ($300 million)
- Planned $400 million cancer-institute development after separation from Dana-Farber
Official Statements & Responses
Dr. Pastore added that departments are being asked to find savings beyond personnel costs, which could involve consolidating, redesigning, relocating, or discontinuing programs.
Verbatim Quotes
- “That zero margin could easily become a negative margin unless they’re proactive about it,” — David E. Williams, president of Health Business Group, a Boston management consulting firm
- “The layoffs cry out for explanation,” — Alan Sager, a professor of health law, policy and management at Boston University