Laid off from DLH Holdings.

DLH Holdings' CEO said in 2026 that after a couple of decades of VA mail-order pharmacy work, DLH withdrew its joint venture bids. What DLH calls cost scaling, which flattened a management layer, appears in its filings as an expense.

What we know about DLH Holdings severance and layoffs

  • 1,013 jobs on four WARN notices, all at VA mail-order pharmacy sites
  • 8 VA pharmacy locations moved from DLH to service-disabled veteran-owned small business contractors
  • 17 days of notice at Lancaster after a November 6, 2025 award decision
  • $5.2 million in cost-scaling expenses over nine months through June 2026
  • $677,000 in accrued severance at June 30, 2026, none at September 30, 2025

The most recent DLH Holdings layoff we've found

DLH said on its July 30, 2026 earnings call that the VA pharmacy program finished moving to small business contractors that quarter and that its cost scaling was materially complete. The newest notice in our WARN tracker is the April 17, 2026 filing for Tucson.

What DLH Holdings layoffs have meant for employees

All four of DLH's notices sit at VA pharmacy sites, and federal contract records name a new staffing contractor at each one, from the Lancaster order in November 2025 to the Tucson order in May 2026. Two of the four carry a stated reason. The Murfreesboro layoff was tied to a government contract's transition and not to a facility closure, Tennessee's memo says, and services there were expected to continue under a successor contractor. In Texas, DLH's letter pointed to the government's contract award decision, and its officials said the VA was entering a new contract, according to mySA's report. All four filings carry the name DLH Solutions, a DLH Holdings subsidiary. If you worked at one of those sites, the company that took over its staffing may matter more to what comes next than DLH does.

DLH's role in the VA's Consolidated Mail Outpatient Pharmacy program, or CMOP, ran for what CEO Zachary Parker called "a couple of decades" on a May 2026 earnings call. The handovers started long before any notice in our WARN tracker. Chelmsford, Massachusetts moved on July 31, 2024 and Hines, Illinois on January 31, 2025, and DLH expected to cease operations at Leavenworth, Kansas when its task order ended that August, its June 2025 10-Q says. The remaining sites went onto a sole-source contract effective October 28, 2025, and DLH expected to keep working them until the VA finished its procurement and transition, its 10-K says. By DLH's account, that left each site's end date to the VA's procurement calendar.

Lancaster shows how that could shorten a layoff warning. DLH put its short notice down to "the unexpected timing" of the award decision and cited the "unforeseeable business circumstances" exception. A federal contract record for DLH's order there fits that account, since its potential end date was shortened from April 30, 2026 to November 29, 2025. A separate federal record shows the potential end date on DLH's Ladson order likewise shortened, from April 28 to February 28, 2026. At Murfreesboro, the state's date and the contract date didn't line up. Tennessee's memo gave March 31, while HigherGov's Murfreesboro record has Ansible's order starting April 26. Those records measure different things, a layoff date and a contractor's start, so neither settles when any given job ended.

Behind the site notices sits a second effort, which DLH calls cost scaling. It booked $5.2 million of those expenses in the nine months through June 30, 2026, across contract costs and general and administrative lines, and its June 2026 10-Q puts them down to programs moving to small business contractors. One program outside the pharmacies went the same way. DLH's Head Start monitoring contract, which earned $37.6 million in fiscal 2025, ended October 31, 2025, after DLH's small business partners weren't selected, the 10-K says. On DLH's July 30, 2026 earnings call, CFO Steve Oroho said some of the scaling changed the "operation management layer," "basically flattening the organization." DLH's count of about 2,300 employees at September 30, 2025 predates all four notices.

DLH's last two pharmacy locations moved to new contractors in the quarter ended June 30, 2026, the June 2026 10-Q says. With that program finished, new CEO Kathryn JohnBull said on the July call, DLH expects revenue to come exclusively from what it calls technology-powered solutions. So if you were at one of the four sites and want to keep doing this work, you could start with the contractor on your site's federal record. At Charleston, HigherGov's contract record estimates daily staffing of 27 pharmacists, 65 certified and 60 non-certified pharmacy technicians and 113 shipper/packers. Tennessee's memo adds that Murfreesboro employees weren't represented by a collective bargaining agreement and didn't have bumping rights, and that the area's rapid response team was notified to coordinate services between DLH and the affected workers. Our unemployment pages for the states on these notices are Texas, South Carolina, Tennessee and Arizona.

A sourced history of DLH Holdings layoffs

  • April 2026, Tucson VA pharmacy notice

    Our WARN tracker and Arizona's record list 312 employees on DLH Solutions' April 17 notice at 3675 E. Britannia Dr. HigherGov's contract record shows Citadel Federal Solutions' staffing order for the Tucson pharmacy starting May 24.

  • January 2026, Murfreesboro VA pharmacy notice

    Tennessee's memo put the permanent layoff at 209 workers effective March 31, tied to a government contract's transition and not a facility closure. HigherGov's contract record shows Ansible Government Solutions' staffing order at Murfreesboro starting April 26.

  • January 2026, Charleston VA pharmacy notice

    South Carolina's report, which our WARN tracker matches on the count, dates the notice January 15 and the permanent layoff of 194 February 28. ALL In Solutions won the Charleston CMOP staffing contract, running from December 30, 2025, HigherGov's contract record shows.

  • November 2025, Lancaster VA pharmacy notice

    Our WARN tracker lists 298 jobs at the Dallas CMOP site, with layoffs dated November 29. DLH told Texas the award decision came November 6, mySA's report says. HigherGov's contract record shows Millbrook Support Services' staffing order starting November 30.

What to do if you're laid off from DLH Holdings

DLH Holdings layoff and severance questions

What severance has DLH Holdings given laid-off employees?

We found no severance amount, formula or plan for laid-off DLH workers in the SEC filings, state records, earnings calls and reports we read. DLH's June 2026 10-Q shows $677,000 in accrued severance at June 30, 2026, a company-wide balance sheet line.

Why did DLH Holdings lose its VA CMOP contracts?

The VA solicited each of the eight locations in its Consolidated Mail Outpatient Pharmacy program separately and limited the awards to service-disabled veteran-owned small business primes, DLH's 10-K says. On a May 2026 earnings call, CEO Zachary Parker said DLH withdrew all its joint venture bids once the VA changed the process, moving the work from "solutions- and tech-derived" execution to "just butts-in-seats."

Who took over DLH Holdings' VA pharmacy sites?

Federal contract records name Millbrook Support Services on the Lancaster order, ALL In Solutions on the Charleston contract, Ansible Government Solutions on the Murfreesboro order and Citadel Federal Solutions on the Tucson order.

Did the new contractors rehire DLH workers?

No source we read counts how many DLH workers the new contractors hired. Tennessee's memo said services were expected to continue subject to the successor's hiring process. mySA's November 2025 report took DLH's word of a new VA contract as a sign the next company might employ the Texas workers, and said "the outcome remains unclear."

How many WARN notices has DLH Holdings filed?

Our WARN tracker lists 4 filings in all, each under the DLH Solutions name, covering 1,013 jobs in Texas, South Carolina, Tennessee and Arizona, and 3 of those, covering 715 jobs, are dated 2026. Our tracker has no DLH row for the Chelmsford, Hines or Leavenworth handovers.