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How federal funding cuts are affecting the healthcare workforce.

Hi there! Tomorrow’s workforce won’t train itself. Join HR Brew on Oct. 30 for a conversation on closing the skills gap before it widens—and keeping your teams ready for whatever’s next.

In today’s edition:

🩺 Ripple effect

🪓 On the chopping block

Tech you love

—Courtney Vinopal, Mikaela Cohen, Adam DeRose

HR STRATEGY

UCSF Medical Center

Jhvephoto/Getty Images

President Trump’s One Big Beautiful Bill Act (OBBBA) will pull back federal funding from health and science-related initiatives and is challenging HR leaders in the healthcare sector to consider how such decisions will affect their budgets, and in turn, in their workforces.

Changes to Medicare and Medicaid that are set to take effect in January of 2026 have already triggered layoffs at health systems like Providence, Adventist Health, and Children’s Hospital Los Angeles.

Medicaid is the most common form of health coverage in the US after employer-sponsored insurance, and hospitals are set to lose a significant source of revenue should patients lose coverage due to provisions included in the OBBBA. The roughly $900 billion cut to the federal health insurance program included in the bill could result in annual job losses of more than 300,000 by 2034, according to an analysis published in JAMA Health.

At the same time, HR leaders at healthcare institutions that have historically depended on federal research grants to fund their work are seeing that money dry up, as well. The Trump administration canceled an estimated $1.8 billion in medical research funding allocated by the National Institutes of Health earlier this spring as part of its efforts to halt support for DEI-related initiatives.

For more on how federal funding cuts are affecting the healthcare workforce, keep reading here.—CV

Presented By LHH

HR STRATEGY

Tariffs layoffs

Cagkansayin/Getty Images

More and more companies are putting managers on the chopping block.

Between May 2022 and May 2025, the number of managers and executives at public companies fell by 6.1% and 4.6%, respectively, according to data from Live Data Technologies, reported on by the Wall Street Journal. Google, for instance, reduced its management headcount by 35% between 2024 and 2025, CNBC reported. Microsoft, Intel, and Amazon have also flattened their corporate structures.

“What they’ve done is taken a hard look at that middle layer of management and are trying to determine what is more efficient for their business models and make cuts there,” said Karan Ferrell-Rhodes, CEO and founder of consulting firm Shockingly Different Leadership. “That was an area that…over the last three to four years, has been ripe for reevaluation for companies.”

For more on what HR should consider before reducing management headcount, keep reading here.—MC

TECH

Computer with "HR" on the screen and a network of employees' profiles

Francis Scialabba

HR Brew is always on the lookout for HR tech easing the burdens that come with the people function. So we asked HR pros about the products that make their lives easier. From HCMs and ATSs to project management and data dashboards, we’re sharing their responses from previous interviews for our Coworking series.

“Workday. Implementing this solution across our organization has allowed for better visibility and an easier partnership, because we all now play in the same sandbox.”

Caroline Bethune, manager of internal mobility, Cox Enterprises

“One type of platform that’s made my life easier is those that help organize and streamline interview questions, item banks, and job analysis data. Tools like applicant tracking systems are great for managing structured interview questions and aligning them with job competencies, and ensuring we get standard, scored responses. Another invaluable resource are detailed job analysis databases. These platforms help centralize information, ensuring consistency and fairness throughout the hiring process. They save me time by keeping everything organized and easily accessible, which ultimately leads to more effective and transparent talent management.”

Kasey Harboe Guentert, executive consultant, APTMetrics

For more on the tech helping HR pros do their jobs, keep reading here.—AD

Together With LHH

WORK PERKS

A desktop computer plugged into a green couch.

Francis Scialabba

Today’s top HR reads.

Stat: UPS announced it has cut more than 48,000 jobs in management and operations so far in 2025, through a combination of layoffs and buyouts. (the Wall Street Journal)

Quote: “I’m saying out loud what no Republican wants to say: If we don’t retain our current agriculture workforce, our farms are going to close.”—Wisconsin Rep. Derrick Van Orden, a Republican, on the impact the Trump administration’s deportation campaign will have on the agriculture industry (Bloomberg)

Read: Employees creating fake receipts to scam their employer isn’t new, but top expense platforms say image-creating generative AI tools have opened the flood gates, leading to a surge in fake receipts this year. (Financial Times)

Solving for salaries: LHH’s latest Salary Guide is here to break down salary benchmarks across industries and functions, share benefits insights, and more. To better understand a world full of AI and skill gaps, grab your copy.*

*A message from our sponsor.

HR Brew’s new show People Person is here to help you through the biggest challenges in the people ops industry, from managing open enrollment to crafting a great workplace culture. Tune in wherever you get your podcasts.

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