Vanderbilt University Medical Center (VUMC) announced plans to lay off up to 650 employees—approximately 2% of its workforce—before the end of its fiscal year on June 30. The move comes after facing deep federal budget cuts totaling $300 million, affecting both research and patient care programs.
CEO Jeff Balser attributed the need for cuts to significant reductions in funding from the National Institutes of Health and Department of Health and Human Services. Earlier this spring, VUMC had already announced $250 million in budget reductions. Now, the total reduction in operating costs has reached $300 million.
Most layoffs will affect employees in research, administrative, and support roles, while clinical hiring will continue—particularly for the planned Jim Ayers Tower, set to open in fall 2025. Affected staff are expected to receive severance packages and assistance.
Local coverage reports indicate that about 650 positions have been flagged, with notifications to impacted employees set for the coming days. Despite the cuts, VUMC emphasizes its continued commitment to patient care and expansion efforts.
Funding shortfalls at VUMC stem from federal policy changes under the Trump administration, which slashed NIH grants and HHS spending. Research shows VUMC ranks among the top 10 medical schools in NIH funding, amplifying the impact of these cuts.
