Layoffs Announced at Iceland’s National Hospital Skip to content

Layoffs Announced at Iceland’s National Hospital

Hulda Gunnarsdóttir, director of Landspítali, Iceland’s national hospital, has announced that the hospital’s labor cost will be reduced by almost ISK 1 billion (USD 9 million, EUR 7 million) this year. To achieve that, 96 positions will be made redundant.

However, not all of the employees who currently fill those positions will be laid off; at least 29 will be offered different positions at the hospital, Morgunbladid reports.

Landspítali hospital in Reykjavík. Copyright: Icelandic Photo Agency.

Landspítali employs approximately 5,100 people, so with 67 layoffs, roughly one percent of the hospital’s staff will lose their jobs. In addition to layoffs, the number of divisional managers at the hospital will be reduced from 24 to six.

Shift arrangements will also be changed; there will be fewer shifts in evenings and during weekends, overtime will be cut as well as increased working hours for those who work less than 100 percent. The goal is to have no one working a lower job percentage than 50 percent.

“We will change seven-day wards to five-day wards, reduce the number of beds and change them to outpatient and day-service wards,” said Gunnarsdóttir. “That way we will need fewer people in the evening, at night and during weekends.”

Gunnarsdóttir said it won’t be easy to achieve an ISK 2.6 billion (USD 23 million, EUR 18 million) cut at Landspítali as requested in the 2009 budget bill. Iceland’s health institutions have to cut their expenses by ISK 6.2 billion (USD 55 million, EUR 43 million) in total this year.

Click here to read about other rationalization measures undertaken in Iceland’s healthcare sector.

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