Employees affected by the layoffs will be notified by Friday.

In a statement to the Globe, the health system said it aims to “return our 141-year-old organization to strong growth and advance our leadership position.”

Like many hospitals in the state, Baystate has faced serious financial challenges in recent years. It lost $63 million in 2023 and $177 million in 2022. It would have lost nearly $60 million this year, Banko told the Globe last month, had it not been for the sale of a lab at Labcorp, a major laboratory operator based in North Carolina in March for more than $133 million.

Baystate wants to generate more than $225 million in savings and new revenue over the next two years, Banko said in the memo, which will require “making some very difficult decisions.”

The health system announced in September that three senior vice presidents would leave the organization effective October 23.

Banko, who became the new head of the system in June, said in this week’s note that more changes would take place after the New Year, including efforts to tackle external spending and “corporate overhead”. He said the organization is also reviewing its real estate holdings.

Baystate has 13,574 employees and serves more than 800,000 people in western New England, with roots dating back to the founding of Springfield Hospital in 1883. With an annual budget of more than $3.2 billion, Baystate has more than 1,000 beds in four hospitals and handles 196,000 visits to its emergency rooms per year. Hospitals deliver over 4,800 babies annually.

Baystate Medical Center is a 716-bed academic medical center and teaching site of the UMass Chan School of Medicine. The hospital includes Baystate Children’s Hospital, the Wesson Women’s and Infants Unit and the region’s only Level 1 Trauma Center.

Jonathan Saltzman can be reached at [email protected].