Cigna cutting 1,100 jobs .
Wednesday, January 7, 2009, 9:43am EST
Cigna cutting 1,100 jobs
Tampa Bay Business Journal
In actions described as a response to the economic downturn, health insurer Cigna Corp. said late Monday it would be laying off 1,100 employees, roughly 4 percent of its work force, as well as consolidating unspecified real estate locations.
The Philadelphia-based company has about 500 employees in Florida.
“There’s no determination yet on which offices, which locations and which employees will be impacted. As soon as we begin to figure that out, we will make a final determination and we will start to notify the locations,” said Chris Curran, spokesman for Cigna.
Cigna said it expects to incur between $30 million and $40 million, after tax, in cost reduction charges in fourth-quarter 2008.
“Given the unprecedented economic situation we and our customers are facing, these actions are essential to ensure we can meet their needs for high value, cost effective products and services,” Cigna Chairman and Chief Executive Officer H. Edward Hanway said in a statement. “Decisions like these are difficult and never made lightly, but they are necessary given the current environment.”
The job eliminations are anticipated to be in large part complete by midyear 2009 and the company said affected employees will be eligible for severance benefits and outplacement support.
CIGNA (NYSE: CI) said it will provide more information on its cost reduction charge during its fourth-quarter earnings call scheduled for Feb. 5.
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