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Aetna to take earnings charge related to layoffs


HARTFORD, Conn.—Aetna Inc. said it is taking steps to reduce its administrative expenses that will result in a fourth-quarter, after-tax earnings charge of $20 million.

The charge is related to severance costs as the company plans to lay off about 650 employees, about 2% of its overall workforce.

The Hartford, Conn.-based insurer said Thursday that the changes will result in increased flexibility, more efficient business operations and a commitment of resources to areas with a greater potential for future growth.