CIGNA Cutting Jobs

Updated 9:15 AM EST, Tue, Jan 6, 2009

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Philadelphia-based insurer CIGNA Corporation announced Monday that it will eliminate 1,100 jobs, roughly 4 percent of it's 28,000 person workforce by mid-year.

The managed care provider with corporate offices in Bloomfield is blaming the looming cuts on a slumping economy as it deals with employer customers who are themselves cutting jobs and reducing health care costs.

CIGNA has 3,800 employees in Connecticut. The company has not said which positions or locations will be affected.

"All of our customers, they're reducing their work forces, and they need to reduce costs," CIGNA spokesman Chris Curran said. "In order for us to be as efficient and as competitive as possible, we've got to manage costs."

CIGNA Chairman and Chief Executive H. Edward Hanway said in a statement his company's actions were essential "given the unprecedented economic situation we and our customers are facing."

The insurer, with several thousand employees in Connecticut, has not said where the cuts will be made but says those affected will be eligible for severance benefits and outplacement support.

CIGNA joins competitors Aetna Inc. and UnitedHealth Group Inc. in trimming staff. Hartford, Conn.-based Aetna said last month it would cut 1,000 jobs, or nearly 3 percent of its work force, due to the slumping economy.

CIGNA shares closed at $18.15 Monday, up 2 percent, or 36 cents, from the previous close. The job cuts were announced at 5 p.m., after the markets closed.

CIGNA's cost reduction announcement can be read here.