CUTS COMING

Aetna Planning Job Reductions

By Jeff Casale

Aetna Inc. is planning staff cuts as the health insurer expects the economic downturn to extend into 2009.

An internal memo was sent to employees of Hartford, Connecticut-based Aetna by Ronald Williams, chairman and CEO, explaining that “selective” cuts would need to be made as a result of the economic slowdown, an Aetna spokesman confirmed.

The spokesman provided no further details on when the cuts would come or how many employees would be affected.

Aetna previously reported that its third-quarter net income dropped 44 percent to $277.3 million, primarily because of investment losses. Meanwhile, the insurer reported that enrollment was up 1 percent to 17.7 million for the quarter.

—Jeff Casale/Business Insurance
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—Crain's Benefits Outlook, November 2008

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