CIGNA Announces $30-40 Million Cost Reduction Charge
PHILADELPHIA, Jan 05, 2009 (BUSINESS WIRE) -- CIGNA (NYSE: CI) announced today several actions in response to the
economic downturn that will strengthen the company's competitive
position, including the reduction in its global workforce by
approximately 1,100 positions, around 4 percent of the company's
employees, and the planned consolidation of certain real estate
locations. As a result of these actions, CIGNA expects to incur
approximately $30 - 40 million, after tax, in cost reduction charges in
the fourth quarter of 2008.
"Given the unprecedented economic situation we and our customers are
facing, these actions are essential to ensure we can meet their needs
for high value, cost effective products and services," said H. Edward
Hanway, Chairman and Chief Executive Officer of CIGNA Corporation.
"Decisions like these are difficult and never made lightly, but they are
necessary given the current environment."
The job eliminations are anticipated to be in large part complete by
mid-year 2009 and all those impacted by these actions will be eligible
for severance benefits and outplacement support.
CIGNA will provide more information on its cost reduction charge during
its fourth quarter earnings call currently scheduled for Feb. 5, 2009.
About CIGNA
CIGNA (NYSE: CI), a global health service company, is dedicated to
helping people improve their health, well-being and security. CIGNA
Corporation's operating subsidiaries provide an integrated suite of
medical, dental, behavioral health, pharmacy and vision care benefits,
as well as group life, accident and disability insurance, to
approximately 47 million people throughout the United States and around
the world. To learn more about CIGNA, visit www.cigna.com.
SOURCE: CIGNA
CIGNA
Chris Curran
215-470-2414
Chris.curran@cigna.com
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