PacificSource Health Plans has announced another major round of layoffs, with 265 employees set to lose their jobs across Oregon. This comes on top of the 56 layoffs the company had previously revealed, marking a significant reduction in its statewide workforce.
Workforce Reduction Across Multiple Cities
According to a Worker Adjustment and Retraining Notification (WARN) filing, the nonprofit insurer is cutting positions in Springfield, Salem, Medford, Bend, and Portland. All 265 affected roles are non-union positions. The downsizing follows PacificSource’s recent decision to withdraw from serving Lane County’s Medicaid population, a move that has forced the company to adjust its operations and staffing levels.
Rising Costs and Funding Challenges
PacificSource spokesperson Lauren Thompson explained that the layoffs were driven by a combination of increasing healthcare costs and ongoing Medicaid funding challenges in Oregon. The company, which has long operated as a nonprofit, said these pressures made maintaining its current staffing levels unsustainable.
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While the WARN notice lists December 31, 2025, as the effective date for most layoffs, Thompson noted that some employees in certain roles will remain employed into early 2026 as the company winds down operations tied to the Medicaid program.
Limited Details on Impacted Roles
Thompson did not specify which departments or positions would be affected, nor how many layoffs would occur at PacificSource’s Springfield headquarters, one of its largest offices. However, she emphasized that impacted employees would receive severance packages and career transition assistance to help ease the transition.
Layoffs Reflect Broader Healthcare Struggles
The cuts at PacificSource are part of a wider trend of healthcare job reductions in Oregon. Other regional providers, including PeaceHealth, have also announced layoffs, with PeaceHealth recently cutting 2.5% of its workforce. The wave of job losses underscores the growing financial strain across Oregon’s healthcare system, particularly for organizations serving Medicaid patients.
Lack of Transparency Raises Questions
According to the state notice, PacificSource is required to keep “a list of job titles and the number of employees currently holding affected positions” accessible onsite. However, when a Register-Guard reporter visited the Springfield headquarters to request the list, they were escorted out of the building and told to contact Thompson via email instead.
The situation highlights both the human and operational consequences of Oregon’s shifting Medicaid landscape. As PacificSource restructures, hundreds of employees are left facing uncertainty — and communities across the state continue to grapple with the impact of reduced healthcare coverage and services.
