New Aetna Chairman Unveils Layoff Plan
Health insurer and benefits provider Aetna Inc. will trim its workforce by 650 — or 2% — in a move to reduce costs and become more competitive.
Nearly a quarter of those whose jobs will be eliminated will be managers, the Hartford, Conn.-based company announced yesterday.
The layoffs mark the first major initiative undertaken by Chief Executive Ronald Williams in his new chairman role. Williams succeeded John Rowe, who retired earlier this month.
Aetna will record $20 million of after-tax charges this quarter to compensate for severance costs. The company did not specify the total cost savings expected from the layoffs.
Hartford, Conn.-based Aetna had 14.8 million members of its medical policies and 13.1 million members of dental policies at yearend 2005. The company has a market capitalization of about $22 billion.
Nearly a quarter of those whose jobs will be eliminated will be managers, the Hartford, Conn.-based company announced yesterday.
The layoffs mark the first major initiative undertaken by Chief Executive Ronald Williams in his new chairman role. Williams succeeded John Rowe, who retired earlier this month.
Aetna will record $20 million of after-tax charges this quarter to compensate for severance costs. The company did not specify the total cost savings expected from the layoffs.
Hartford, Conn.-based Aetna had 14.8 million members of its medical policies and 13.1 million members of dental policies at yearend 2005. The company has a market capitalization of about $22 billion.
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