Health Care
Cigna to Cut 1,100 Jobs
TSC Staff
01/05/09 - 06:18 PM EST
Health care provider Cigna Corp. (CI Quote) announced Monday it would cut about 1,100 jobs, or 4% of its workforce, citing the weak economy.
As a result of the cuts, the company said it expects to record after-tax restructuring charges of $30 million to $40 million in the fourth quarter of 2008.
Cigna shares, which have traded as high as $56.98 within the last 52 weeks, ended Monday's trading session up 36 cents, or about 2%, at $18.15.
Cigna competitors Aetna (AET Quote)and UnitedHealth Group (UNH Quote) have also recently announced cuts. Aetna said last month it would cut 1,000 jobs, or close 3% of its work force, and UnitedHealth announced plans to cut 4,000 jobs last July.
All those affected by Cigna's cuts, which are expected to be completed by the middle of this year, will be eligible for severance benefits.