In Nashville, Tennessee, Vanderbilt University Medical Center is letting go of up to 650 employees due to federal budget reductions impacting research funding.

According to a statement from the hospital, the layoffs account for about 2% of VUMC’s total workforce.

VUMC announced that because of budgetary changes in Washington, DC, which have affected funding for government-backed research and patient care, they are cutting over $300 million in operating expenses, resulting in a workforce reduction.

The layoffs affect “up to 650 of our valued colleagues working primarily in research, administrative and other support areas.”

Although this decision is challenging, VUMC noted that the job cuts will affect less than 2% of the entire staff. To aid those impacted, VUMC is offering severance packages and additional support measures.

VUMC further affirmed its commitment to “meeting the needs of all who depend on us for health care,” including the more than 3.5 million patients it receives annually.

“To accommodate the growing demand for care, VUMC is continuing to hire frontline clinical staff for the opening of the 180-bed Jim Ayers Tower later this year,” the hospital told News 2.