UPDATE: CentraCare to Lay Off 535 Employees in Major Restructuring Across Central Minnesota

Originally published: 11:01 a.m. August 12th, 2025

Updated: 4:04 p.m. August 12th, 2025

(KNSI) – CentraCare, which operates St. Cloud Hospital and medical facilities throughout central Minnesota, is implementing a significant restructuring that will affect 535 employees across its 44 locations.

According to the health care provider, the layoffs are mostly in administrative and support positions, which account for approximately 70% of the cuts or about 375 employees. The remaining 30% or roughly 160 employees will be cut from patient care roles.

CentraCare blames the cuts on several financial pressures facing the healthcare industry, including rising operational costs, insufficient reimbursement payments from insurance companies, and inadequate payments from government healthcare programs.

“CentraCare is responding to significant external pressures, including rising costs and reimbursement rates that no longer cover the true cost of care,” the company stated. “While difficult, making these adjustments now will strengthen CentraCare’s foundation to remain a trusted healthcare partner.”

CentraCare says the final number of affected employees may change as the organization works to place those facing layoffs in one of 350 other open positions within its healthcare network.

The restructuring represents a significant development for central Minnesota’s regional economy. According to the St. Cloud Area Chamber of Commerce, CentraCare is by far the area’s largest employer with 7,541 total employees, which is more than the combined workforce of the region’s next three largest employers.

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