Health insurers have become the latest members of the troubled insurance industry to trim their ranks as the global downturn has forced the sector to readjust and cut costs. Philadelphia-based Cigna Corp. announced Monday it would layoff 1,100, or 4% of its work force as part of a corporate restructuring plan. Cigna said it expects to record an after-tax charge of $30 million to $40 million in the fourth quarter of 2008 as a result of the cost reduction efforts.
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Cigna would also consolidate some real estate locations as well as reportedly freeze pay of salaried workers. The moves come as no surprise as the unemployment rate in the U.S. continues to rise in part due to Cigna and its peers. Other insurers recently announcing layoffs include Aetna Inc (1,000 in
December), Hartford Financial Services (500 in November) and UnitedHealth Group Inc. (4,000 in July). - Gerald Magpily
See Cigna press release
Comments
This layoff is not really due to a sick economy. CIGNA aquired Great-West Healthcare last year and now they are laying off because there is a duplication of roles. Simply put, CIGNA wanted to aquire the business not the employees, a layoff would have probably occured even in a good economy.