PacifiCare To Cut 15% of Workforce - TheStreet

PacifiCare To Cut 15% of Workforce

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PacifiCare Health

(PHSY)

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.