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. The hospital is also removing 100 inpatient beds and reducing certain programs to stabilize operations.

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.
• As of March 2026, Alameda Health System planned layoffs affecting up to 188 positions in 2026 as it faces major funding reductions tied to federal healthcare spending changes. In March, county officials and the hospital system agreed to temporarily pause the layoffs while exploring alternatives to reduce the budget gap.

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.

Boulder City Hospital Layoffs 2026

Boulder City Hospital is transitioning to a rural emergency hospital designation, eliminating certain inpatient services. The move is expected to result in “dozens” of layoffs. The decision follows changes to Medicaid reimbursement and provider funding that hospital leaders said affected the facility’s financial stability.

Baystate Health Layoffs 2026

Baystate Health announced in February 2026 that it reduced 117 corporate positions, representing less than 1% of its workforce, as part of an effort to improve efficiency. The system said the cuts primarily affected corporate functions, while clinical engineering services will transition to an external partner.

Franciscan Health Olympia Fields Hospital Layoffs 2026

Franciscan Health issued WARN notices affecting 1,930 employees at its Olympia Fields hospital in Illinois as part of a transition of ownership to Prime Healthcare. Officials said the notices were a legal requirement tied to the acquisition, and that most employees are expected to receive new job offers.

Greenwood Leflore Hospital Layoffs 2026

Greenwood Leflore Hospital announced layoffs affecting 86 employees in April 2026, including 46 full-time and 40 part-time positions. The Mississippi Delta hospital is also closing several clinics and service lines as it faces longstanding financial strain and explores a possible transaction with a larger health system.

Extendicare Countryside Layoffs 2026

Extendicare Countryside is laying off 21 employees at its long-term care home in Sudbury, Ontario, according to union representatives. The cuts, reported in April 2026, affect nurses, maintenance workers, resident support aides and housekeeping staff, while the company said it is adjusting staffing levels after operations stabilized.

ECU Health Layoffs 2026

ECU Health plans to lay off 161 employees effective May 1, 2026, in connection with the proposed sale of its home health and hospice business to Liberty Home Care and Hospice. The health system said the move is tied in part to financial pressures associated with rural healthcare.

Sodexo/HCA Houston Hospital Food Service Layoffs 2026

Sodexo issued notices affecting 296 workers across four HCA Healthcare hospitals in the Houston area, with the changes scheduled to take effect June 13, 2026. The layoffs follow HCA’s decision to bring food service operations in-house, though affected employees were offered opportunities to continue in those roles.

UCI Health Layoffs 2026

UCI Health said in March 2026 that a strategic restructuring will affect about 1% of its workforce. More than 70% of the layoffs are expected to involve non-patient-facing roles, according to the health system, which said the realignment is intended to support changing community care needs.

Blount Memorial Hospital Layoffs 2026

Blount Memorial Hospital filed a WARN notice in March 2026 for a permanent layoff of 85 employees effective May 1. The Tennessee hospital did not provide additional details in the filing about the roles affected or the reason for the workforce reduction.

Jefferson Health Layoffs 2026

Jefferson Health laid off roughly 600 to 700 employees in April 2026 as it works to streamline operations following years of acquisitions. The nonprofit health system cited persistent financial pressure and ongoing integration across its expanded hospital network.

Chatham-Kent Health Alliance Layoffs 2026

Chatham-Kent Health Alliance said in April 2026 that it will eliminate 49 positions as part of a financial recovery plan to address an estimated $5 million deficit. The Ontario hospital said the reductions include float pool, full-time and part-time roles, with some vacancies expected to be managed through attrition.

TouchPoint/Beacon Health Support Services Layoffs 2026

TouchPoint Support Services and Compass Group USA issued notices affecting 262 employees tied to Beacon Health System operations in southwest Michigan. The layoffs are scheduled to take effect July 1, 2026. Beacon brings nutritional, environmental and transport services in-house, and affected workers must reapply for positions.

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.

Point32Health Layoffs 2026

Point32Health announced plans in March 2026 to lay off about 100 employees, or roughly 2.3% of its workforce, as part of a restructuring across select departments. The insurer reported a $301 million operating loss in 2025, citing rising medical and pharmacy costs.

Cigna Layoffs 2026

Health insurer Cigna plans to lay off about 2,000 employees globally as part of a multi-year effort to streamline operations and reduce costs. The workforce reductions are expected to continue through 2026 as the company seeks efficiencies amid rising medical spending.

Walgreens Layoffs 2026

Walgreens announced layoffs affecting 628 employees across Illinois and Texas in February 2026, following its acquisition by private equity firm Sycamore Partners. The cuts include 469 jobs in Illinois and 159 roles tied to the closure of a Texas distribution center, as the pharmacy chain undertakes cost-reduction measures after the buyout.

Blue Shield of California Layoffs 2026

Blue Shield of California announced 18 additional layoffs in March 2026 at its Rancho Cordova and El Dorado Hills offices. The cuts bring the insurer’s reported job reductions across California to 301 since July, according to state filings.

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.

Cannabis/Specialty Healthcare Services

Trulieve Layoffs 2026

Trulieve announced plans in March 2026 to lay off 58 employees at its Clearwater, Florida, call center. The company described the move as a permanent mass layoff due to business restructuring, with the cuts scheduled to take effect on May 1.

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