The University of Texas MD Anderson Cancer Center has announced that a reduction of 1,000 people will be laid off to save $120 million.

Roughly 5 percent of the total workforce of the cancer center will lose their jobs in layoffs or a total of 800 to 900 persons will be left without a job after the cut. The remaining 100 to 200 expected cut will be through attrition and retirement.

Although no clinical faculty will be affected by the cut, around 120 employees in the managerial, leadership or VP roles will be laid off.

According to officials in a conference, the focus of the job cut was focused on staff reductions, restructuring of administrative support and an emphasis on not affecting patient care was given.

Around 20,000 people make up the workforce for the center and MD Anderson Cancer Center is one of the major employers in Houston. In March of 2016, the center introduced a new electronic health records system, this is when the centers financial problem started.

In order to counteract the initial loss of productivity brought about by the introduction of the new system, the center had to bolster its cash reserves, hired additional contractors and part-time personnel to facilitate a smooth transition into the new system according to a report by the Houston Business Journal.

According to the center's leaders operating losses of more than $50 million had been incurred in both September and October. Although a cost-containment plan was implanted, job loss is inevitable.

MD Anderson President Dr. Ron Pinho stated that the institution was built on the excellence of staff members. He stated that downsizing was necessary to continue the ability of the nonprofit institution to reinvest in further cancer research as reported by Dallas News.

MD Anderson is designated as a comprehensive cancer center by the National Cancer Institute and is one among the 47 institutions across the whole of the United States.

This recognition is given to research facilities that conduct both laboratory and clinical research and also focus on population based health initiatives.