The healthcare industry is undergoing significant workforce reductions, with job cuts affecting providers and manufacturers.
Here are six things to know about healthcare layoffs in 2025:
1. Healthcare, including hospitals, and related products companies and manufacturers cut 51,588 jobs in 2024, according to the most recent report from Challenger, Gray & Christmas. That’s an 11.9% decrease from 58,560 in 2023.
2. Overall, U.S.-based employers announced 49,795 job cuts in January 2025, up 28% from the 38,792 announced the month prior. It is down 40% from the 82,307 cuts announced in January 2024, according to the report.
3. More than 24 hospitals and health systems have made plans to lay off employees in 2025, according to Becker’s reports. Most recently, Envision Healthcare and its affiliates announced plans to lay off 120 employees who provide services at Baptist Health System in San Antonio.
4. Physician clinics and practices are also affected. Jacksonville (Fla.) Orthopaedic Institute said it will lay off more than 300 employees and close six clinics following its recent buyout by Baptist Health and will return to operating as an independent practice. In addition, Springfield (Ill.) Clinic plans to lay off nearly 70 employees.
5. Notably, HHS began sending out dismissal notices April 1 as part of an agencywide plan to lay off about 10,000 full-time employees. HHS Secretary Robert F. Kennedy Jr. has since acknowledged that mistakes may have been made in the recent dismissal of 10,000 agency employees, suggesting that around 20% of affected individuals may have their jobs reinstated.
6. Healthcare layoffs extend beyond providers, affecting disruptors like CVS Health. In September, the company laid off 2,900 employees, primarily in corporate roles and in March, CVS announced plans for laying off an additional 183 employees in Wellesley, Mass.
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