McLaren Northern Michigan in Petoskey will be eliminating 43 positions and cutting the hours of several others.
According to hospital officials, 22 positions were eliminated, including nine manager positions, while 21 others were eliminated through retirement.
Hospital officials also estimate approximately 100 workers will experience a reduction in hours.
"Today we are undertaking a necessary step of implementing multiple cost reductions," said David Zechman, President and CEO of McLaren Northern Michigan.
"This is a system-wide action that will include all functions and locations across McLaren Northern Michigan," Zechman said. "Our industry is in a challenging and pivotal transition to the new healthcare model, and it is clear that steps are necessary to maximize our patient care options in that model."
Hospital officials say they will also be re-evaluating departmental budgets and operational processes.
"These changes reflect the re-design of programs and departments to improve productivity and do not diminish our ability to maintain high levels of patient care staffing," the press release reads.