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news.Cigna, an investor-owned health service organization, has announced that it will reduce its global workforce by approximately 1,100 positions, around 4% of the company's employees, and also consolidate certain real estate locations.
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As a result of these actions, Cigna expects to incur approximately $30-40 million, after tax, in cost reduction charges in the fourth quarter of 2008. The job eliminations are anticipated to be in large part complete by mid-year 2009 and all those impacted by these actions will be eligible for severance benefits and outplacement support.
Edward Hanway, chairman and CEO of Cigna, said: “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. Decisions like these are difficult and never made lightly, but they are necessary given the current environment.”