New York hospital cuts 1,000 jobs amid $750Mn abuse settlement
NEW YORK, UNITED STATES — New York-Presbyterian Hospital is laying off 2% of its workforce, with 1,000 employees citing macroeconomic realities and future financial challenges.
The cuts come just days after the hospital and Columbia University agreed to a $750 million settlement over sexual abuse claims involving former gynecologist Robert Hadden, bringing total legal payouts past $1 billion.
Financial strain forces workforce reductions
New York-Presbyterian, one of New York’s largest healthcare systems, confirmed a 2% workforce reduction, affecting 1,000 of its 50,000 employees. The hospital cited macroeconomic realities and anticipated challenges in a statement, signaling broader financial pressures.
While the layoffs impact corporate and frontline roles, in a comment on an anonymous discussion platform, TheLayoff.com, it said that executives warned staff of impending cuts, with VPs already notifying teams.
The timing raises questions about whether the $750 million settlement, part of a more than 1 billion legal payout, contributed to cost-cutting measures. Although there is no direct connection, the hospital’s financial strain coincides with the burden of this massive legal settlement.
New York-Presbyterian operates over 450 locations across the region, and sustaining operations amid rising costs and legal liabilities may have necessitated restructuring.
Abuse scandal casts shadow on hospital’s reputation
The layoffs follow a dark chapter for New York-Presbyterian and Columbia University, which settled claims from 576 legal cases of abuse by former gynecologist Robert Hadden.
Hadden, now serving 20 years in prison, preyed on women at Columbia University Irving Medical Center and New York-Presbyterian for years before his 2023 conviction. The latest settlement, approved by a Manhattan judge, adds to the institution’s reputational and financial damage.
While the hospital maintains the layoffs are unrelated, the scandal underscores long-term institutional risks. With $1 billion in total settlements, the case highlights systemic failures in patient safety—a crisis that could further erode public trust.
