As of Nov. 19, Aetna will be reducing its workforce by nearly 2 percent, consistent with its goal of aligning cost structure with company membership outlooks for 2010. The reduction will affect 625 employees now, with a similar number of reductions anticipated by the end of the first quarter 2010.
One hundred and sixty of the job cuts are occurring at Aetna’s Hartford, Conn., headquarters, 65 in Florida and 60 in Pennsylvania, with the rest spread out across the nation.
The result of this round of cuts and ongoing real estate consolidation, according to Aetna, is $40 million after tax savings. No savings estimate has been put on the pending reductions next year.
Ronald A. Williams
Ronald A. Williams, Aetna’s chairman and chief executive officer, noted the recession’s impact on the insurer’s customers and preparation 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,” Williams said in a statement. “Change is never easy but, working from a position of strength, we should be able to manage through the evolving environment.”
The cuts, according to Aetna, are to ensure it can meet its service and commitments to customers, members and others.