Healthcare Layoffs 2025: A Roundup

Healthcare organizations have long used workforce adjustments to respond to changing market dynamics, regulatory pressures and the need to refocus on core patient care. In this blog, we detail the healthcare layoffs in 2025, examining the underlying factors and potential ramifications for the industry.

In 2024, major players like CVS Health and Bio‑Rad Laboratories made headlines by trimming their staff. CVS Health reportedly cut over 1,000 jobs, while Bio‑Rad slashed more than 350 positions in response to financial pressures, which included a net loss of $1.84 billion.

These sweeping changes underscored the urgency for healthcare systems to realign their resources and streamline operations. Rising operating expenses — spurred by supply chain disruptions, increased labor costs and regulatory pressures — have forced many healthcare organizations to cut staff in order to remain financially sustainable.

As we move into 2025, new announcements signal that organizations seek to create leaner, more agile operations capable of meeting the challenges of today’s healthcare environment.

HealthCare Layoffs in 2025: A Closer Look

Federal Health Agencies

HHS Layoffs 2025
HHS is cutting 10,000 full-time positions as part of a major restructuring, reducing its workforce from 82,000 to 62,000. Key agency cuts include 3,500 at the FDA, 2,400 at the CDC, 1,200 at the NIH and 300 at CMS.

VA Layoffs 2025
The Department of Veterans Affairs dismissed over 1,000 probationary employees, impacting clinical and research programs in areas such as oncology and mental health.

Virginia Department of Health Layoffs 2025
The Virginia Department of Health began layoffs affecting community health workers, nurses and epidemiologists after federal COVID funding was slashed by $11.4 billion.

Minnesota Department of Health Layoffs 2025
The Minnesota Department of Health terminated several COVID-related federal grants, resulting in approximately 200 layoffs.

Hospitals & Health Systems

Cleveland Clinic Layoffs 2025

Cleveland Clinic, a globally renowned academic medical center and leader in clinical innovation, is eliminating 114 jobs, according to a Fox8 report.

Despite these healthcare layoffs, the organization continues to hire in critical areas. Cleveland Clinica remains committed to expanding its impact by improving primary care access in Mahoning Valley and advancing education in quantum computing through a strategic partnership with Miami University.

Main Line Health Layoffs 2025

Main Line Health offers integrated healthcare services that focus on delivering high-quality, patient-centered care across its network.

According to MSN, Main Line Health is laying off nearly 200 nonclinical staff — approximately 15% of its workforce — to streamline administrative functions and reduce costs. This measure aims to enhance operational efficiency while maintaining the quality of patient care in its core clinical areas.

Advocate Health/Walgreens Partnership Layoffs 2025

NBC Chicago reported that Advocate Health, in collaboration with Walgreens, is set to close 47 outpatient clinics in Illinois as both organizations work together to optimize operations and reduce costs.

As one of the nation’s largest health systems, Advocate Health is integrating hospital and retail pharmacy services to create a more cohesive patient service model.

Earlier in 2024, the company made headlines by canceling a substantial debt at a North Carolina hospital, reinforcing its commitment to financial stability and reinvestment in patient care.

Mass General Brigham Layoffs 2025

Boston 25 News reported that Mass General Brigham, one of Massachusetts’ largest employers, plans to lay off hundreds of employees over the next two months as part of a broader restructuring to address a $250 million budget deficit.

With layoffs affecting management and administrative roles across 12 hospitals, this initiative aims to reduce $200 million in salary and benefit expenses while ensuring that frontline patient care remains robust.

Endeavor Health Layoffs 2025

According to a recent NCH report on Patch, Endeavor Health will end inpatient psychiatric services at Northwest Community Hospital in Arlington Heights on April 11, eliminating 100 jobs. The move comes amid significant cost pressures and a shift toward outpatient, telehealth care — while affected employees may be considered for other roles within the system.

Jefferson Health Layoffs 2025

Jefferson Health — a comprehensive healthcare system providing integrated patient care, research and education — is laying off 171 back-office employees, according to The Philadelphia Inquirer. The decision is part of broader cost-cutting measures aimed at streamlining administrative functions as the organization adapts to evolving financial pressures.

The ongoing workforce adjustments in 2025 are a clear sign that healthcare organizations are committed to reshaping their operations amid economic and regulatory challenges.

As these changes take effect, stakeholders across the healthcare ecosystem will need to stay informed and adapt to the evolving environment — a shift that began in 2024 and continues into 2025.

Kindred Hospital Bay Area-Tampa Layoffs 2025

Kindred Hospital Bay Area-Tampa closed as part of a consolidation effort that merged three hospitals into two. This decision resulted in the elimination of 143 positions between February and March 2025, reflecting the organization’s broader strategy to streamline operations.

Corewell Health Layoffs 2025

Corewell Health has executed a reduction of approximately 160 to 190 nonclinical roles in response to escalating operating costs. This measure is aimed at streamlining administrative functions while ensuring that the focus on patient care remains unchanged.

Queen’s Health Systems Layoffs 2025

Queen’s Health Systems reduced its workforce by approximately 100 positions — about 1% of its overall staff — to trim operational costs. The move is designed to improve efficiency while continuing to maintain high-quality patient care.

Baystate Health Layoffs 2025

Baystate Health eliminated 98 corporate positions as part of a $225 million transformation plan. This restructuring effort is intended to streamline operations and fortify the organization’s financial resilience.

Kaiser Permanente Layoffs 2025

Kaiser Permanente has announced plans to eliminate 64 positions by April 25, 2025, as part of broader cost-control measures aimed at sustaining long-term operational efficiency.

Mass General Brigham Layoffs 2025

Mass General Brigham is planning a significant reduction in its workforce by cutting hundreds of jobs, primarily within management and administrative roles. This move is designed to address a projected $250 million budget gap and is expected to roll out over the coming months.

Christus Health Layoffs 2025

Christus Health is set to eliminate 479 positions due to the planned closure of the Christus Santa Rosa Medical Center. The organization anticipates that the facility consolidation will take effect by April 25, 2025, as part of its restructuring strategy.

Homer G. Phillips Hospital Layoffs 2025

Homer G. Phillips Hospital is preparing to layoff an undisclosed number of positions as it temporarily suspends operations due to a combination of operational challenges — including a critical blood supply shortage — which has forced it to reassess its staffing levels.

United Medical Center Layoffs 2025

United Medical Center, the only public hospital in Washington, DC, is scheduled for a full shutdown, resulting in the elimination of 485 positions by April 15, 2025. This drastic measure reflects broader financial and operational challenges faced by public healthcare institutions.

MaineGeneral Health Layoffs 2025
MaineGeneral Health in Augusta announced plans to lay off about 100 full-time employees due to financial pressures from lower reimbursements.

Johns Hopkins Medicine Layoffs 2025
Johns Hopkins Medicine plans to terminate over 2,000 employees across clinical and administrative areas as part of a restructuring effort.

Valley Medical Center Layoffs 2025
Valley Medical Center in Renton, WA, laid off 101 non-union employees after federal Medicaid reimbursements ended, triggering an $80 million to $100 million annual shortfall.

East Ohio Regional Hospital Layoffs 2025
East Ohio Regional Hospital has initiated voluntary layoffs to balance operational costs amid financial challenges.

Insight Trumbull Layoffs 2025
Insight Trumbull in Ohio announced forthcoming layoffs as part of a strategic realignment; specific numbers were not disclosed.

Dimock Center Layoffs 2025
Boston’s Dimock Center implemented a hiring freeze and staff reductions due to economic pressures; exact figures were not provided.

Yale New Haven Health Layoffs 2025
Yale New Haven Health’s Northeast Medical Group is cutting 150 jobs across Connecticut and Rhode Island in cost-cutting measures.

Springfield Clinic Layoffs 2025
Springfield Clinic in Illinois announced layoffs amid mounting financial challenges; the precise number of affected employees was not specified.

Waco Family Medicine Layoffs 2025
Waco Family Medicine in Texas is closing multiple clinics and laying off staff members due to financial constraints; detailed numbers were not provided.

Christus Health Layoffs 2025
Christus Health is closing its 378-bed Santa Rosa Medical Center hospital in San Antonio on April 25, resulting in layoffs for 479 employees.

Mount Sinai Beth Israel Layoffs 2025
Mount Sinai Beth Israel in New York City planned to close on March 26, 2025, after years of losses, potentially affecting hundreds of employees.

Penn Medicine Layoffs 2025
Penn Medicine is eliminating approximately 300 positions across clinical and non-clinical roles to streamline its operations.

Health Insurance & Payers

Highmark Health Layoffs 2025

Highmark Health eliminated 208 positions across its operations in Pennsylvania and New York. This reduction comes as the company grapples with competitive pressures and losses in key federal contracts, prompting a push for enhanced operational efficiency.

WPS Health Solutions Layoffs 2025

WPS Health Solutions finalized the elimination of 313 jobs in response to losses in federal contracts and heightened market competition in the Medicare contracting space. This significant reduction aims to realign the organization’s cost structure with prevailing market conditions.

Blue Cross of Idaho Layoffs 2025

Blue Cross of Idaho plans to eliminate 135 positions by the end of March 2025. This decision follows the loss of a major state contract in the Medicare/Medicaid space and is part of the company’s efforts to realign its cost structure.

Blue Cross & Blue Shield of Rhode Island Layoffs 2025

Blue Cross & Blue Shield of Rhode Island is set to cut approximately 30 jobs — about 3% of its workforce — as it seeks to mitigate the financial challenges resulting from a significant net loss in 2024.

Optum (UnitedHealth Group) Layoffs 2025

Optum, a key arm of UnitedHealth Group in New Jersey, recently announced a major restructuring effort. According to a CNBC report, UnitedHealthcare has been offering buyouts to employees as it considers further layoffs.

University of Michigan Health Plan Layoffs 2025

The University of Michigan Health Plan is phasing out 192 jobs from December 2024 through February 2026 as it prepares to exit the insurance market. This gradual reduction is intended to help the organization reallocate resources more efficiently.

Arkansas Blue Cross Blue Shield Layoffs 2025

Arkansas Blue Cross Blue Shield is set to reduce its workforce by approximately 75 positions — around 2% of its staff — by March 21, 2025. This planned reduction is focused on controlling administrative costs amid increasing operational pressures.

GEHA (Government Employees Health Association) Layoffs 2025

GEHA plans to phase out 453 positions by April 13, 2025. This planned downsizing is part of a broader initiative aimed at achieving long-term cost management and operational efficiency.

Aetna (CVS Health) Layoffs 2025

Aetna, under the umbrella of CVS Health, is continuing an enterprise-wide restructuring effort that will result in ongoing layoffs exceeding 600 positions through June 2025. This strategy is designed to streamline operations and align the organization’s resources with its strategic priorities.