Ike forces 3,800 job cuts at UT’s Galveston hospital — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Ike forces 3,800 job cuts at UT’s Galveston hospital

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The governing board of the University of Texas announced that it plans to cut 3,800 full-time jobs at its University of Texas Medical Branch in Galveston. The university decided to lay off the employees because of financial losses caused by Hurricane Ike.

The medical branch employs 12,500 workers, 3,000 of whom have been off the job with pay and benefits since mid-September. The layoffs will become effective in mid-January.

Most hospitals in the area were forced to close because of storm damage.

University officials said the hurricane caused $700 million in damage, but that insurance will cover only $100 million. Most of the cuts will be at John Sealy Hospital, which will be reduced from a 500-bed facility to a 200-bed facility.

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