Cigna Corp. said Monday that it will cut 1,100 jobs worldwide, or 4 percent of its workforce, and consolidate some operations amid the ongoing recession.
The Philadelphia-based insurer said the actions will result in after-tax restructuring charges of $30 million to $40 million in the fourth quarter of 2008.
The layoffs are expected to be completed by mid-2009. The company said it will provide more details on cost-cutting measures at its first-quarter earnings conference call February 5.
“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 CEO H. Edward Hanway said in a statement.
Cigna told investors in the fall fall that it would likely reduce expenditures because of falling enrollment and investment losses.
Filed by Rebecca Vesely of Modern Healthcare, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.
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