The Deal
Saturday, July 4, 
7:09 pm

Cigna's layoffs just another symptom of sick economy

  Share     E-Mail    Discussion (1)     Print Story

cigna.gifHealth 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.


Continue reading below

Also on Dealscape

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

From: Jody Johnson,

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.


Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: SecondMarket's Silbert on helping VCs achieve pre-IPO liquidity for their investments.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Potential FBAR filing changes

Offshore hedge funds and private equity funds may be 'financial accounts' for which investors must file FBAR.


Industry Insight

Finger on the pulse

Things PE investors should keep in mind to maintain the support and commitment from their lenders and limited partners.


Industry Insight

Closing the tough deal

Terms and structures now used to get deals done are post-closing purchase price payments, earnouts, simultaneous acquisitions, rollups, payments in kind and joint ventures.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.