will cut 15% of its workforce and record a charge that will result in a loss in the fourth quarter.
The Santa Ana, Calif.-based health insurer will cut 1,300 jobs in an effort to save up to $90 million a year. The actions will result in a $60 million pretax charge, or about $1.14 a share after tax, leading to a loss in the fourth quarter.
For 2002, the company expects to earn $3.55 to $3.65 a share, which is at the upper end of analysts' expectations. The company said it expects profit margins to improve in 2002.