Arkansas Children’s lays off 25, cutting cost due to COVID-19

Local News

LITTLE ROCK, Ark. — Arkansas Children’s provides the following statement regarding systemwide cost-saving measures announced to staff this afternoon. 

“We are collectively living through the most difficult health crisis of our lifetime. As a direct result of the impact of COVID-19, Arkansas Children’s has experienced a decrease in patient volumes and a reduction in workload for some team members. There is every indication that these changes in volume and workload will last through June 2021.

Today, we announced a series of cost-saving measures to ensure uninterrupted service to the children of Arkansas and beyond:

  • 20% reduction in executive compensation for the fiscal year 2021.
  • 10% reduction in director compensation for the fiscal year 2021.
  • Mandatory reduction of all external travel costs through June 2021.
  • Elimination of select contracted services.
    Significant reduction of onsite catering and sponsored event expenses.
  • 50% reduction in minor equipment expenditures through June 2021.
  • 30% reduction in capital expenditures through June 2021.
    Elimination of traditional merit pay program for all staff through June 2021.
  • Required Executive Vice President approval for any new hire. Only strategically essential positions may be hired.
  • Elimination of 42 positions across Arkansas Children’s. 17 of the 42 positions are currently vacant. 25 of the position eliminations impact a team member with whom we have already met individually to discuss.

Again, these difficult actions are through no fault of any employee, but rather a direct result of reduced workload due to the impact of COVID-19.”

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