PacificSource to lay off 134 Oregon workers, including in Salem, by year's end (Oct. 21)

Main Street in downtown Springfield, Oregon, where PacificSource is based, in September 2026. File photo for location context. Photo: AnthonyTheGuy / Wikimedia Commons, CC BY 4.0

Updated 3:05 p.m. PT Oct. 21.

Quick Read

• Springfield-based health insurer PacificSource plans to permanently lay off 134 non-union employees in Oregon, according to a WARN notice reported by KGW.

• The cuts take effect Dec. 31, 2026, and will mostly affect the company's Bend, Portland, Salem and Springfield locations, KGW reported.

• PacificSource says it is scaling back as it exits the individual insurance market and withdraws from Montana.

• The company has not said how many of the jobs are in Salem.

SPRINGFIELD, Ore. - PacificSource plans to lay off 134 non-union employees across six Oregon locations, including Salem, as the health insurer scales back its business, according to a WARN notice reported by KGW.

The layoffs take effect Dec. 31, 2026, and will mostly affect the company's Bend, Portland, Salem and Springfield locations, KGW reported. PacificSource has not disclosed how many workers are being laid off at each site. One employee each is being laid off at the Hood River and Medford locations, according to correspondence with the Oregon Employment Department cited by KGW.

The company said in the notice that it is reducing its workforce as it prepares to end its individual coverage plans, which end Jan. 1, 2027, and to withdraw entirely from Montana, according to KGW. The Oregonian/OregonLive also reported the 134 job cuts.

What PacificSource said

"As a not-for-profit organization, PacificSource is making difficult decisions to focus on providing high-quality coverage to the people who rely on us," the company said in a statement. "We will help affected employees through this process as much as possible, including offering severance packages if they qualify per company policy."

"These are not decisions made lightly," the statement said. "We know they will affect people's coverage and livelihoods, and we recognize the real impact on the individuals and communities we serve."

PacificSource's website says it employs more than 1,500 people, KGW reported, though it was unclear whether that figure reflects earlier layoffs.

Sources

KGW: PacificSource laying off 134 workers by end of year (Oct. 21, 2026)

The Oregonian/OregonLive: PacificSource to lay off 134 more Oregon workers as insurer continues to shrink (Oct. 21, 2026)