Business & Tech

Hallmark Health to cut 57 jobs

Hallmark Health System of Medford is cutting 2 percent of its workforce as part of a cost-cutting plan ahead of its planned merger with the parent company of Tufts Medical Center.

The 57 layoffs include people in administrative, managerial, and patient care positions across all of Hallmark’s locations. The system runs hospitals in Medford and Melrose.

Chief executive Alan G. Macdonald said the cuts will help Hallmark save $16 million this fiscal year and position the health system to post profits in the years ahead.

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“This work is critical for Hallmark Health to successfully navigate industry-wide challenges of lower inpatient volumes, increases in overhead expenses and less reimbursement for our services,” Macdonald said in a memo to staff on Wednesday.

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He added that layoffs were minimized by leaving certain positions open and reducing work hours when possible.

Hallmark is planning a merger with Wellforce, the parent of Tufts Medical Center in Boston and Lowell General Hospital. The state Health Policy Commission signed off on the deal in September. The deal has not yet closed.

Priyanka Dayal McCluskey can be reached at priyanka.mccluskey@globe.com. Follow her on Twitter @priyanka_dayal.