CIGNA Announces $30-40 Million Cost Reduction Charge.PHILADELPHIA -- CIGNA CIGNA CG (Connecticut General Life Insurance Company) INA (Insurance Company of North America) (NYSE NYSE See: New York Stock Exchange :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 out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. 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 An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. provide an integrated suite of medical, dental, behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or , pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 47 million people throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and around the world. To learn more about CIGNA, visit www.cigna.com. |
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