Ochsner Health is the latest victim in the battle of ever-increasing health care costs, with the company announcing Thursday morning its intent to layoff 770 employees across its facilities in Louisiana and the Mississippi coast.

Ochsner CEO Pete November made the announcement via a company-wide email which was also posted to the Ochsner website.

“As an organization whose Core Values are rooted in putting our patients and people first, this is not a decision our executive leadership team takes lightly or one we ever wanted to make,” November wrote.

“It is the hardest change we have ever had to make at Ochsner, but one we must to ensure we continue to be a strong organization with the resources to fulfill our purpose and lead the way for clinical excellence and innovation.”

The layoffs reflect about 2% of the company’s total workforce of 38,000. Doctors, nurses and other clinical staff will not be affected, with the majority of the layoffs coming in the areas of management, administration and clerical positions.

The cuts will also be spread evenly across Ochsner’s 42 hospitals and 200-plus care centers across the two states.

The layoffs are expected to save Ochsner roughly $125 million to $150 million annually, according to NOLA.com. It is the latest in a series of health care systems nationwide to implement payroll reductions in the face of rising costs in the wake of the COVID-19 pandemic.

Ochsner lost some $96 million last year, with expenses exceeding revenues by 1.5%, NOLA.com reported. It was first unprofitable year in more than a decade.

‘This organization is full of people who go above and beyond every day to make a difference to the patients we serve, the communities we love and the colleagues we support,” November wrote in his email.

“For those talented professionals who will be leaving us today: this is not the experience we hoped you would have at Ochsner. I want to thank you for all you have done and for sharing your talents with us.”