Cigna cutting 1,100 jobs

Cigna cutting 1,100 jobs

In actions described as a response to the economic downturn, health insurer Cigna Corp. said late Monday that it would be laying off 1,100 employees, roughly 4 percent of its work force, as well as consolidating unspecified real estate locations.

Information on how the moves will affect Philadelphia, where the company has its headquarters, or Pittsburgh, where Cigna is the region's 12th-largest health insurer, was not made available.

Cigna said it expects to incur between $30 million and $40 million, after tax, in cost reduction charges in fourth-quarter 2008.

“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,” Cigna Chairman and CEO H. Edward Hanway said in a statement. “Decisions like these are difficult and never made lightly, but they are necessary given the current environment.”

The job eliminations are anticipated to be in large part complete by midyear 2009 and the company said affected employees will be eligible for severance benefits and outplacement support.

CIGNA (NYSE:CI) said it will provide more information on its cost reduction charge during its fourth-quarter earnings call scheduled for Feb. 5.