Cigna Corp. says it will cut 1,100 jobs worldwide, or 4% of its workforce, and consolidate some operations amid the ongoing economic 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 on Feb. 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, H. Edward Hanway, chairman and chief executive officer of Cigna said in a statement.
Cigna told investors this fall that it would likely reduce expenditures because of falling enrollment and investment losses. -- by Rebecca Vesely
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