Ascension Technologies to lay off hundreds as it outsources some IT work – St. Louis Business Journal – St. Louis Business Journal

Ascension Technologies, a subsidiary of St. Louis-based health system Ascension, plans to lay off more than 300 employees as it outsources some of its information technology work.
The company, a nonprofit that provides Ascension and its subsidiaries with IT infrastructure and software application services, said the layoffs mostly affect “a remote workforce not based in Missouri,” according to a Worker Adjustment and Retraining Notification Act (WARN Act) notice filed with the state of Missouri last week.
“After extended discernment and as part of its technology transformation,” the company said it decided to hire a third party to do the work currently done by employees who provide technology support for application and platforms, collaboration and end-user engineering, network and telecom, and field services functions.
The total number of employees affected on or around Nov. 19 is estimated at 330, the organization said. While Ascension Technologies said most of the jobs affected are remote, it noted that seven St. Louis-area employees would likely be affected. The state’s WARN website reports 18 Missouri workers are included in the layoffs.
Affected workers will have the opportunity to apply for other jobs within Ascension Technologies as well as with the new IT services vendor, according to the notice, so the total number of employees laid off “may be significantly less.”
Ascension Technologies will provide severance and outplacement services to workers who lose their jobs and don’t find another work within the organization, according to the notice.
Ascension Health-IS Inc., which does business as Ascension Technologies, is based at Ascension’s headquarters at 4600 Edmundson Road in the St. Louis County suburb of Edmundson. It also has a satellite office at 4240 Duncan Ave. in the Cortex district.
Gerry Lewis, Ascension’s senior vice president and chief information officer, is president and CEO of Ascension Technologies.
Ascension Health-IS reported total revenue of $1.07 billion and total expenses of nearly $1.17 billion for the year ended June 30, 2020, according to its most recent IRS filing.
Ascension is the nation’s largest nonprofit and Catholic health system. It operates at more than 2,600 sites, including 146 hospitals and over 40 senior living facilities. For the fiscal year ended June 30, Ascension reported fiscal 2021 net income of nearly $5.7 million and total operating revenue of $27.2 billion.
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