Cigna Corp., Philadelphia, said it will eliminate 700 jobs nationwide, or about 2.5% of its workforce, by the end of March 2003 in its first round of layoffs since announcing a massive restructuring in late October. The layoffs are in addition to 3,100 job cuts, mostly in service operations, announced in January. Cigna plans to spend up to $100 million next year to overhaul its healthcare operations, which have been plagued by pricing miscues and customer-service problems related to implementation of a new information system. The company lost $877 million in the third quarter, including a $1 billion charge for its now-defunct reinsurance business. A precipitous drop in its stock price over the past month has triggered shareholder lawsuits and a Securities and Exchange Commission investigation. -- by Laura B. Benko
Cigna to cut 700 workers in restructuring
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