The layoffs were presented to the hospital’s board for consideration on Thursday, and would represent a 6 percent reduction in the current staff size of 15,800 employees.
In its proposal to the board, Karolinska management suggests that most of the redundancies can be achieved by limiting the number of new hires, retirement, and attrition and by not extending the terms of temporary employees.
Normal staff turnover at the hospital is around 1,500 employees annually.
However, job losses will also be necessary as a part of the savings programme.
While Karolinska said in a statement it couldn’t put an exact figure on the number of people to be let go, it said it was planning to give notice to around 600 employees.
Just before Christmas, the Svenska Dagbladet (SvD) newspaper reported that Karolinska faced a massive budget deficit of 260 million kronor ($31.3 million) for 2008, which was expected to balloon to 450 million kronor in 2009.
According to the hospital, the staff reduction is expected to save Karolinska 170 million kronor in 2009, reaching its full effect of 450 million in 2010.
The hospital’s annual budget is around 13 billion kronor.