A coated cutting insert for removing material from a workpiece that includes a substrate is disclosed. A wear-resistant coating on the substrate that includes an α-alumina layer and a Zr— or Hf— carbonitride outer layer deposited on the α-alumina layer. The Zr— or Hf— carbonitride outer layer is subjected to a post-coat wet blasting treatment. The wet blasting changes the stress condition of the exposed alumina coating layer from an initial tensile stress condition to a compressive stress condition.