City of Industry, CA --(ALL INSURANCECOVERAGE)-- 11/20/2009 - Medical business industry news provided by Financial News USA. Aetna Announces Targeted Job Eliminations
Aetna (NYSE:AET) today announced that it is reducing its workforce by approximately 625 positions. This action is consistent with our goal of aligning our cost structure with the company's membership outlook for 2010. Aetna currently has approximately 35,500 employees. The company expects to incur a restructuring charge of approximately $40 million, after tax, as a result of today's workforce reductions and ongoing real estate consolidation.1 In addition, Aetna anticipates making a similar number of workforce reductions by the end of the first quarter 2010, and expects to disclose the financial impact of that action once decisions are finalized.
The company said these decisions are designed to ensure Aetna's ability to meet its service and quality commitments to customers, members and other constituents. Eligible employees will receive severance benefits based on length of service as well as outplacement and other support programs.
In addition to making workforce reductions, the company expects to consolidate field offices in some locations in order to reduce real estate costs. The company is not exiting any markets as a result of this announcement.
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