More than 1,000 job cuts Aetna 1 for quarter
Indianapolis – Health insurance company said on Wednesday that Aetna would immediately cut 625 jobs, or about 2 percent of its staff, and former cold for the economy for the last quarter of 2010 a deduction equal to the number and improve the health the possible effect.
Hartford, Aetna based Conn.-977 jobs cut last December and currently has about 35.500 people. Many other large insurance companies, including Indianapolis,-WellPoint, Inc and the Philadelphia-based cut-Cigna Corp. has announced.
Health insurance companies faced financial pressures in recent quarters the growth, the company cut jobs as the number of people covered by employer – sponsored health insurance is disconnected. Many insurance companies will continue this project in 2010 as a loss of register with the unemployment rate is expected to keep growing.
, Edward Jones analyst Steve Shubitz, which after many insurance companies “It’s something that only industry wide right” said.
Aetna, the third largest managed care company, saw turnover in public, enrollment in the third quarter, 8 percent more than 19 million people are healing. But in that fourth quarter and another 225.000 people lost in the first quarter of 2010 is expected to 650.000, spokesman Fred Laberge said.
Besides job cuts employer, Aetna some increase is expected to lose customers because of price, Laberge said.
Chairman and Chief Executive Officer Ronald A. Williams, Aetna’s statement that the insurance company for one for “health care reform and regulatory changes that impact on our business may have been asked to prepare. “
Congress and the health care system reform plan covers more uninsured are debated. Insurance company does not know who hope in the debate, but do not know insurance market reforms and tax increases are likely in the short term, Laberge said.
“We hope that our profits and our ability to invest for growth put additional pressure,” the spokesman said.
Job cuts in the first quarter of Aetna’s plan, but said the exact amount and Laberge has not been set.
Issued in respect of retrenchment Aetna book of U.S. $ 40 million restructuring charge. When these decisions in the future economic impact of the redundancies will be highlighted.
Most of Connecticut announced the cuts Wednesday, will be held in, where the company’s headquarters. The company said that its market as a result of any job cuts go, but in some places, hoping to strengthen regional offices in order to reduce real estate costs.
Insurance company announced Wednesday after the market closed. So $ 29.16 for shares fell 5 cents, after trading hours.