English
Hamilton Health Sciences, one of Ontario’s largest hospital networks, plans to cut more than 400 positions as it works to close a projected $150 million budget deficit for the 2026–27 fiscal year. The announcement places Hamilton among a growing number of Ontario hospitals reducing their workforces under provincial pressure to eliminate long-running deficits.
An internal memo from president and CEO Tracey MacArthur confirmed that approximately 413 union and non-union positions are targeted for elimination. However, around one-third of those roles are currently vacant, which the hospital says will limit the number of staff who actually lose their jobs.
Stay connected to every major update — subscribe and follow us on the PhoenixQ website and across our social media platforms.
Provincial Directive Drives Budget Cuts
Ontario’s Ministry of Health directed deficit-carrying hospitals last year to develop three-year plans to balance their budgets. The ministry also instructed hospitals to act immediately on any measures considered low risk. Most hospitals in the province currently operate in deficit.
MacArthur’s memo outlined savings targets of two per cent for clinical budgets and five per cent for administrative budgets this year. She acknowledged the hospital’s strong efficiency record but said further action was unavoidable.
“Like many hospitals, we are facing rising costs and a growing demand for care,” MacArthur wrote. “In addition to $40 million of cost reductions achieved last year, further action is required to operate within the funding available to us.”
She also noted that some staffing capacity added during and after the pandemic was never supported by permanent funding. Therefore, the hospital must scale back that temporary capacity to a level its budget can sustain.
Nursing and Health-Care Aide Roles Among Those Affected
The memo identified roughly 143 nursing positions and 84 health-care aide positions for elimination. Because vacancy rates in those roles are high, the hospital expects “few if any” individuals to face actual job loss.
Despite that assurance, union leaders pushed back strongly. Jillian Watt, president of the Canadian Union of Public Employees local representing more than 4,700 Hamilton Health Sciences workers, said the cuts will affect patient care regardless of how they are managed.
“You’re still leaving people short,” Watt said. “The work still exists. It’s just existing with less and less people.”
Meanwhile, a spokesperson for Health Minister Sylvia Jones disputed the claim that patient services would suffer. Lily Barnes said in a statement that the changes at Hamilton Health Sciences will not impact patient services or access to care.
“As we continue to modernize and strengthen the delivery of hospital care, we have asked hospitals to plan for their long-term stability,” Barnes wrote.
Funding Gap Fuels Broader Hospital Pressures
Ontario increased hospital funding by four per cent this year, adding $1.1 billion to the sector. However, the Ontario Hospital Association said the actual funding need was more than double that amount. As a result, many hospitals continue to face significant financial pressure even after the increase.
Hamilton Health Sciences is not alone in making these difficult decisions. Earlier this year, The Ottawa Hospital announced a three per cent workforce reduction, which translates to hundreds of jobs. The hospital said it would use vacancy management and early retirements to minimize layoffs. So far, that process has limited involuntary departures to just 17 people.
Similarly, London Health Sciences Centre announced it would cut nursing positions through attrition rather than direct layoffs. Chatham-Kent Health Alliance also said it planned to eliminate 49 positions by leaving vacancies unfilled.
Together, these announcements reflect a province-wide trend. Ontario hospitals are under sustained pressure to reduce costs while maintaining care standards, and the full impact of these workforce reductions on patients and staff remains to be seen.
