A managed care company is consolidating offices and eliminating about 4% of its workforce.
CIGNA Corp., Philadelphia, says it will be cutting about 1,100 positions by mid-year.
CIGNA will post a charge of about $30 million to $40 million for the fourth quarter of 2008 to account for the cost of making the changes, the company says.
“Decisions like these are difficult and never made lightly, but they are necessary given the current environment,” CIGNA Chairman H. Edward Hanway says in a statement.
Employees affected by the job cuts will be eligible for severance benefits and outplacement help, CIGNA says.
CIGNA says it expects to give more information about cost reduction efforts Feb. 5, when it holds its fourth-quarter earnings call.