The University of Mississippi Medical Center announced 195 job cuts and the elimination of an additional 85 open positions in an attempt to deal with a $32.7 million shortfall in revenue.
The cuts, along with other reduced spending and enhanced revenues, are expected to create $24 million in savings by June 30, officials said.
The savings won’t completely solve UMMC’s financial problems, said LouAnn Woodward, vice chancellor for health affairs and dean of the School of Medicine.
“We expect these pressures on our revenues to continue, so our emphasis on efficiency, growing revenues and finding new ways to provide the same or better services at a reduced cost will continue through fiscal year 2018,” she said.
The affected employees come from all facets of the organization, including academic, research, service and the faculty, Woodward said. A number of faculty members also took pay cuts.
Woodward said many of the savings will come from restructuring, and modifying programs to run more efficiently. Although there is not an outright hiring freeze, there will be additional constraints on the hiring process.
“Unfortunately, it was not possible to reach savings of this magnitude without reductions in staffing,” she said.
Outplacement services are available for employees who are losing their jobs.