FARGO (KFGO) – Facing estimated losses of $100-million in the first three months of the year, Essentia Health has announced layoffs.
Essentia says about 900 employees, 6% of its workforce, will be affected by the layoffs. The medical group says more than half of the affected employees work at hospitals and clinics in the Duluth area. Under 20% of the laid-off employees are in the Fargo-Detroit Lakes region. That translates to 178 jobs.
“Despite our best efforts, the many cost-reduction measures we’ve taken over the last several weeks are not sufficient to preserve our mission and the health of the organization,” says Essentia Health CEO David C. Herman, MD. “This has prompted our leadership team to carefully consider the most difficult decision we’ve faced since I joined Essentia five years ago and move forward with permanent layoffs.”
Herman said Essentia will continue to provide health insurance for noncontract employees for the next three months.
Staff covered by collective bargaining agreements have other protections including the right of recall. Additionally, there are about 850 Essentia colleagues on administrative leave with benefits through July 31, with the intention of being called back to work as needed.
