Resurrection Health Care, which operates eight hospitals in Chicago and its adjacent suburbs, is eliminating 125 management, ambulatory services and system support positions.
The Chicago-based Catholic healthcare system said 81 employees have already been laid off and an additional 44 vacant positions will not be filled.
Officials said most of the impacted positions are in the corporate system services management areas, which comprise less than 1 percent of the system's work force of more than 14,000 employees.
They insisted that no employees who provide bedside care are affected.
The healthcare system lost $73 million in 2008, and projects additional significant losses in the fiscal year ending June 30, 2009.