Cigna Corp., Philadelphia, confirmed it will record a fourth-quarter after-tax charge of $98 million as it works to reduce its workforce by roughly 7.5% over the coming year. The charge comes on top of a $1 billion charge in the third quarter and is consistent with the insurer's announcement in mid-October that it would spend up to $100 million in 2003 to restructure its beleaguered healthcare operations. Cigna said it plans to cut 3,250 jobs in a move it expects will yield cost savings of about $100 million this year. The cuts consist of 700 layoffs completed in November and 2,150 to be completed in the first quarter. The rest will occur by year-end. Cigna had 41,812 employees as of Dec. 31. -- by Laura B. Benko
Cigna to take $98 million charge for layoffs
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