Aenta to Cut 5,000 Jobs
Aetna Healthcare has announced it will be cutting 12.5% of its workforce in an effort to improve competitiveness and profitability.
Other steps being taken to eliminate unprofitable business include withdrawing from Medicare coverage in some markets, ending HMO offerings in some areas, and attrition in Prudential HealthCare membership.
An estimated 5,000 out of 40,000 employees will lose their jobs, either through attrition or layoffs.
Aetna officials said these new cost-saving actions are expected to result in $200 million pretax savings in 2001.
Information from www.washingtonpost.com
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