This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Humana Cuts 1,400 Jobs; Market Approves

NEW YORK ( TheStreet) -- Humana (HUM - Get Report) announced Wednesday that it plans to reduce its workforce by 5%, or about 1,400 positions, over 2010.

The market is responding positively to the measures, pushing up shares of Humana by 2.3% to $47.10.

Humana says the job reduction -- just the latest, of course, of many recent major corporate layoffs -- will mainly come about through attrition, position eliminations and outsourcing, among others. The company says those unable to find another position within Humana will receive severance.

In all, the workforce reduction involves 2,500 job cuts combined with the creation of 1,100 additional jobs. These additional jobs will occur in what the company calls growth areas, including medical-cost containment, pharmacy management and specialty products.

"This regrettable but necessary reduction in our workforce is a direct result of Humana's need to align the size of our company with that of our membership," Humana's chief Michael McCallister says in a statement.

Humana says the workforce reduction shouldn't affect its earnings guidance, which the company reaffirmed to be $5.15 to $5.35 per common share for 2010.

In related news, employers have shed another 20,000 jobs in January, according to the Labor Department's nonfarm payrolls, in layoffs that have hit all corners of the U.S. economy.

-- Reported by Andrea Tse in New York

RELATED STORIES:

>>See our new stock quote page.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
HUM $182.35 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs