Aetna Announces Targeted Job Eliminations
Reduction of approximately 1,000 positions, or less than 3 percent of workforce
Part of effort to reduce overall operating costs
Company to record aggregate after-tax charge of approximately $35 million in 2008
HARTFORD, Conn. — Aetna (NYSE: AET) today announced it will reduce its workforce by approximately 1,000 positions, or less than 3 percent of the company’s 36,208 employees. This action is designed to align administrative expenses with the company’s growth outlook for 2009 and redirect resources to areas with a greater potential for future growth. As a result of this and other actions, Aetna expects to incur approximately $35 million, after tax, in restructuring charges in the fourth quarter of 2008. 1
“These actions will reduce our operating costs and allow us to manage through the economic downturn from a position of strength,” said Ronald A. Williams, chairman and CEO. “The fundamentals of our business are solid, and we continue to win in the marketplace. While changes like this are never easy, they will help us maintain our strong competitiveness and ensure our continuing success.”
The company said the job eliminations are targeted to ensure that they do not impair Aetna’s ability to meet its customer commitments and growth targets going forward. Eligible employees will receive severance benefits based on length of service as well as outplacement and other support programs.
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