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Member, Beacon International Group, Ltd.
HARTFORD, Conn.—Health insurance giant Aetna Inc. said Wednesday it will shed 625 jobs due to economic conditions.
Aetna, which has approximately 35,000 employees, also said it anticipates making a similar number of layoffs by the end of the first quarter of 2010.
In a statement, the Hartford, Conn.-based insurer said it expects to disclose the financial impact of those job cuts once the decisions are finalized.
Aetna said it expects to incur a restructuring charge of about $40 million after taxes as a result of job cuts announced Wednesday as well as real estate consolidations.
“The economic downturn has had a significant impact on our customers,” Ronald A. Williams, Aetna’s chairman and chief executive officer, said in a statement. “In addition, we must prepare for the impact that health care reform and regulatory changes may have on our business. Streamlining our business now will enable us to improve our competitiveness and redirect resources to areas with a greater potential for future growth.”
Aetna said it expects to consolidate field offices in some locations to reduce real estate costs. However, the company said it is not exiting any markets as a result of the job cuts.