Healthcare layoffs in Texas are on the rise again, with a major closure expected to eliminate nearly 100 jobs in North Texas just before Christmas.
Cottonwood Creek Healthcare Community, a skilled nursing and rehabilitation center in Richardson, is set to close permanently on December 1, eliminating all 70 positions in one round of separations, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the Texas Workforce Commission.
Cottonwood Creek’s director of human resources, Scott Kane, wrote in the notice that there would be no phased layoffs or union protections for staff but that the company planned to work with the Workforce Commission’s Rapid Response Unit to provide retraining and job placement support, per The Houston Chronicle.
The new filings add to a trend of healthcare job cuts that has made the sector Texas’ hardest hit for layoffs so far in 2025. By early September, healthcare employers had reported 1,238 layoffs across the state, compared with 1,081 in the technology sector, according to filings reviewed by The Dallas Express.
The total included large workforce reductions earlier this year, such as 589 layoffs at MedStar Mobile Healthcare in Fort Worth, 120 at Envision Physician Services in San Antonio, and 114 at Planned Parenthood Gulf Coast’s Prevention Park facility in Houston.
Planned Parenthood Gulf Coast also announced in July that it would close two Houston clinics, citing restructuring and what it described as “relentless, coordinated efforts to dismantle access to sexual and reproductive healthcare across our region,” Houston Public Media reported.
Layoffs statewide, across various industries, have been concentrated in the largest counties. Houston has recorded the highest number of job losses across industries, with 2,924 job losses so far in 2025, followed by Tarrant County with 2,244, according to DX calculations.
In the healthcare-related industry, there are more job losses on the horizon.
Sunny Glen Children’s Home, a faith-based nonprofit in San Benito that has provided foster placement, residential care, and family support services for decades, will close on November 17 and cut approximately 424 jobs, the notice stated. Chase Palmer, the organization’s chief executive officer, stated in a press release, “We are committed to complying with all applicable regulations and ensuring that our employees have the resources they need during this transition,” according to The Chronicle.
Sunny Glen has also provided housing for unaccompanied alien children under federal contracts with the Office of Refugee Resettlement. The nonprofit did not specify reasons for its shutdown in its WARN letter.
However, numerous organizations that use taxpayer money for the resettlement of illegal aliens in Texas shuttered after the transition in presidential administrations this January, The Dallas Express reported.
If current trends hold, Texas is on track to record around 20,000 layoffs by year’s end, a modest decline from 2024, when job cuts spiked across multiple industries.