Healthcare Layoffs 2026: A Running Roundup

In 2026, we are seeing a mixed picture of the labor market. According to a comprehensive recent report, US employers announced 108,435 layoffs in January 2026 alone, which is the highest January total since 2009 and more than double the level reported a year earlier. Planned hiring also fell to its lowest January level on record.

Data from the US Bureau of Labor Statistics showed that healthcare employment was still growing toward the end of 2025, but at a slower pace than earlier in the year. Against that backdrop, some healthcare organizations entered 2026 cutting staff as they worked to control costs and adjust operations.

Last year, employers including CVS Health and multiple hospital systems announced layoffs affecting hundreds to thousands of roles, often citing reimbursement pressure and rising operating costs. Below, we track confirmed healthcare layoffs announced in 2026.

Healthcare Services & Digital Health

Hazel Health Layoffs 2026

Hazel Health laid off 135 employees in February 2026, including clinicians, marking its second round of cuts in four months. The K-12 healthcare startup cited financial and operational sustainability challenges and said clinicians with smaller caseloads were impacted to limit patient disruption.

Major Hospitals & Health Systems

Columbia Memorial Hospital Workforce Concerns 2026

Columbia Memorial Hospital is proposing a transition to critical access hospital status that would reduce beds from over 150 to 60. While management has said no layoffs are planned, employees and unions have raised concerns about potential job losses if the state approves the proposal.

CVS Health Aetna Layoffs 2026

CVS Health’s Aetna unit announced 313 additional layoffs in February 2026, primarily affecting remote workers in its small group business. The permanent cuts will occur between April and July 2026 and follow the loss of a 2026 contract and prior workforce reductions.

North Star Health Alliance Layoffs 2026

North Star Health Alliance announced plans in January 2026 to lay off more than 100 employees across its two hospital campuses. The cuts affect management, clinical and non-clinical roles and follow the loss of state transition funding and ongoing disputes over healthcare financing.

Trinity Health/MercyOne Layoffs 2026

Trinity Health confirmed layoffs affecting 141 employees across three MercyOne hospitals in Iowa in early 2026. The health system cited low reimbursement, rising care costs and projected government funding changes, including an estimated $1.5 billion annual revenue impact.

Erie County Medical Center (ECMC) Layoffs 2026

Erie County Medical Center said it would cut about 3% of its workforce and impose a one-week unpaid furlough for management staff in 2026. The reductions, largely non-clinical, were attributed to rising costs, inadequate reimbursement and increased payment denials.

Valley Medical Group Layoffs 2026

Valley Medical Group laid off 41 employees in January 2026, representing about 10% of its workforce. The independent primary care group cited longstanding financial pressures. No practitioners were affected, and leadership said the cuts were necessary to maintain clinical operations.

Hennepin Healthcare Layoffs 2026

Hennepin Healthcare announced plans to permanently lay off about 100 employees by March 2026 as it consolidates services at its Minneapolis campus. The health system cited a roughly $50 million budget shortfall and significant projected losses from uncompensated care and Medicaid revenue.

Teton Valley Health Care Layoffs 2026

Teton Valley Health Care laid off 26 employees in January 2026 and confirmed plans to close its infusion clinic. The rural health system cited declining insurance reimbursements and rising costs, saying the cuts were necessary to preserve core services amid mounting financial strain.

Pomona Valley Hospital Medical Center Layoffs 2026

Pomona Valley Hospital Medical Center will eliminate 265 positions effective March 8, 2026. The cuts follow a reported $40 million revenue loss in 2025 tied to reduced federal and state health funding. The reductions span management, clinical and non-clinical roles, including registered nurses.

Alameda Health System Layoffs 2026

Alameda Health System confirmed plans to eliminate 247 positions across its five public hospitals in early 2026. The system cited federal Medicaid cuts, estimating losses exceeding $100 million annually by 2030. Officials said layoffs affect multiple departments, prompting concerns about impacts on care for low-income communities.

One Brooklyn Health Layoffs 2026

One Brooklyn Health cut more than 50 roles across its New York City safety-net system in February 2026. The reductions include leadership and nonclinical administrative positions and follow an internal operational review. The system said no core clinical services or essential community-based programs were eliminated.

Healthcare Services & Payers

Noridian Healthcare Solutions Layoffs 2026

Noridian Healthcare Solutions laid off 143 employees in January 2026, representing about 7% of its workforce. The Medicare administrative contractor said the reductions reflect alignment with current federal funding levels. Affected employees include staff across the organization, with 39 based in the Fargo-Moorhead area.

Horizon Blue Cross Blue Shield of New Jersey Layoffs 2026

Horizon Blue Cross Blue Shield of New Jersey announced that it would lay off 242 employees beginning in April 2026, affecting about 4% of its workforce. The insurer cited rising medical costs and increased utilization, noting it has reduced operating costs by $275 million over the past three years.

Primary Care & Outpatient Providers

Oak Street Health Layoffs 2026

CVS-owned Oak Street Health issued layoff notices to 219 employees in Illinois beginning January 2026, according to WARN filings. The reductions follow the planned closure of 16 underperforming primary care clinics announced in late 2025.

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