Chicago-based Catholic Charity Group Announces Layoffs due Uncertain Future with government funding

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Catholic Charities of the Archdiocese of Chicago announced a significant workforce reduction, planning to lay off 300 employees amid a strategic shift away from government-funded contracts. The organization attributes this decision to the challenges of an "increasingly complex and uncertain government funding environment," prompting it to terminate 75 government contracts that finance 12% of its budget. These contracts span a range of services, including child care, youth programs, behavioral health counseling, senior care, adult protection, veteran services, and call centers.

The move is part of a broader strategic overhaul aimed at lessening the organization's reliance on public funding, transitioning towards a model that emphasizes private funding sources. Sally Blount, president and CEO, highlighted the difficulties of navigating the government services sector, noting that funding has not kept pace with inflation, rendering many contracts financially unsustainable.

As a result, approximately 280 employees working on the affected government contracts, along with 20 in related administrative roles, will be impacted by the layoffs over the coming months. This reduction will leave Catholic Charities with nearly 1,000 staff members. The organization has committed to providing severance benefits and job search assistance within its network of sister organizations, such as Mercy Home, Misericordia, and Maryville. This strategic realignment is aimed at bolstering the organization’s governance, operations, and financial oversight, ensuring it continues to serve vulnerable populations through privately funded programs.