Tri-Cities largest employer plans voluntary layoffs amid federal budget uncertainty

Pacific Northwest National Laboratory in Richland plans to cut 130 positions as it prepares for uncertain funding levels in the fiscal year that starts Oct. 1.

Given federal budget uncertainty, it is preparing for cuts in some of its research programs, said PNNL Laboratory Director Steven Ashby in a memo to staff Wednesday morning obtained by the Tri-City Herald.

“As part of our effort to improve operational efficiency, we also need to reduce overhead-funded support positions,” he told staff. “Toward this end, we will eliminate approximately 40 vacant positions and about 90 staffed positions.”

Cuts will be made through attrition and by offering voluntary layoffs, he said. The voluntary layoffs will be narrowly targeted and not available to all staff.

The Department of Energy lab operated by contractor Battelle is the largest single employer in the Tri-Cities with 6,400 employees, the majority of them based at its Richland campus.

The U.S. House Appropriations Committee has approved a proposed budget for DOE programs, including for research programs at national labs like the one in Richland, that would fund most programs below current levels.

The Senate Appropriations Committee is expected to approve its proposed budget in September. The House and Senate bills will then have to be reconciled and sent to President Trump for signing.

However, the process may not be completed until after Jan. 1, which would leave more uncertainty for the lab as the fiscal year starts.

Laboratory officials and researchers are working to bring in additional research dollars that will help pay for staff into the new fiscal year, Ashby said.

The lab also will shift a few planned purchases into the final days of the current fiscal year and defer some planned investments in facilities and infrastructure.

Last week it also began notifying PNNL retirees that it will reduce some of their benefits to save $4 million a year.

It surprised retirees by telling them it would stop paying up to 50% of the cost of continued health insurance for retirees not yet eligible for Medicare. It also will end the Health Reimbursement Arrangement, which paid some retirees and their spouses up to $1,200 a year for some health care expenses not covered by Medicare.

Ashby did not mention the retiree benefit cuts in his memo Wednesday.

The memo said that changes are difficult, but needed for success of the lab in the coming fiscal year.

“By acting now, we are preserving our ability to respond quickly to sponsor needs and to compete for high-impact programs as new opportunities emerge in FY2026,” Ashby said in the memo. “The operational efficiencies also demonstrate our commitment to be good stewards of the taxpayers’ money that funds us.”

This story was originally published August 6, 2025 at 1:15 PM.