[Chron] UTMB to begin first of 3,000 layoffs this week

GALVESTON — The University of Texas Medical Branch in Galveston on Tuesday will begin laying off the first of about 3,000 employees it expects to shed this week because of damage caused by Hurricane Ike, UTMB President David Callender announced Monday.

Callender, in a message to UTMB's 12,000 employees, said the layoffs would be completed by Nov. 24.

Employees have been expecting the layoffs since the University of Texas' board of regents last week approved cutting the UTMB workforce by 3,800. Most of the layoffs are expected to come from UTMB's John Sealy Hospital, which is temporarily closed because of storm damage.

The layoff is a severe financial blow to Galveston County and the city of Galveston, already suffering economically because of the damage caused by the storm.

UTMB suffered $710 million in storm damage, but carried only $100 million in insurance coverage. The hospital, the medical school's main source of income, is no longer earning money.

Officials say the layoffs are needed because UTMB is losing more than $40 million a month, mostly from salaries.

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