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news.Aetna, a diversified healthcare benefits company, has announced that it will reduce its workforce by approximately 1,000 positions, or less than 3% of the company's 36,208 employees.
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According to the company, this action is designed to align administrative expenses with the company’s growth outlook for 2009 and redirect resources to areas with a greater potential for future growth. As a result of this and other actions, Aetna expects to incur approximately $35 million, after tax, in restructuring charges in the fourth quarter of 2008.
The company has said the job eliminations are targeted to ensure that they do not impair Aetna’s ability to meet its customer commitments and growth targets going forward. Eligible employees will receive severance benefits based on length of service as well as outplacement and other support programs.
Ronald Williams, chairman and CEO of Aetna, said: “These actions will reduce our operating costs and allow us to manage through the economic downturn from a position of strength. The fundamentals of our business are solid, and we continue to win in the marketplace. While changes like this are never easy, they will help us maintain our strong competitiveness and ensure our continuing success.”