ANN ARBOR, MI Michigan Medicine will be laying off 738 employees by the end of the month, according to a spokesperson.

Last month, University of Michigan and hospital officials projected a loss of $230 million in the 2019-20 fiscal year and expect the losses to continue, and as a result, 1,400 employees would be furloughed or laid off. Michigan Medicine spokesperson Mary Masson said Thursday that Michigan Medicine achieved more than half of that target through attrition and furloughs, and the number has been reduced.

Michigan Medicine made safety in all our missions the top priority when determining where reductions in force would occur. These challenging but carefully considered actions will help Michigan Medicine continue to provide hope and healing to our patients and allow us to continue to support our clinical, educational and research missions, Masson said.

Masson added that these are eliminated positions and not furloughs, but employees are eligible for rehire any time during the layoff period.

A staff member laid off or transferred from a position will be recalled to the position before temporary or new regular staff members are hired if it occurs within set time limits and the staff member has retained the ability to perform the work, Masson said.

Masson said that some impacted employees would receive pay and beenfits for varying periods of time, depending on their tenure. All impacted employees will have access to career transition assistance, Masson said.

Michigan Medicine previously suspended merit salary increases, employer retirement match, tuition reimbursement and delay non-urgent capital projects, including plans for a 12-story adult hospital. The health care system has also implemented a hiring freeze on 300 vacancies in addition to furloughs, according to a May 5 news release.

Michigan Medicine to furlough 1,400 employees, delay construction on new hospital

The university announced in April that all three campuses, including Michigan Medicine, estimate anticipated losses of $400 million to $1 billion through the end of the 2020 calendar year. UM also announced hiring freezes and that employees base salaries would not increase through the end of the 2020-21 budget year.

University of Michigan imposes hiring, salary freezes to face anticipated losses of $400M to $1B

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Michigan Medicine nearly cuts layoffs in half; 738 employees to be cut by end of June - MLive.com