MISHAWAKA, Ind. (AP) – One of Indiana's largest hospital systems says it will lay off 275 employees and cut 650 other full-time positions through retirements, other attrition and reduced hours.

Mishawaka-based Franciscan Alliance says the 1.4 percent reduction in its workforce will affect its 11 hospitals across Indiana. The Catholic health care system said it must cut its costs by 15 percent to 20 percent, or as much as $500 million, over the next three years to remain viable.