Last week, Aetna said it was cutting back on 1.76 percent of its staff, or about 625 employees.
The layoffs come as part of a new plan by the insurance company to reduce costs amid a drop in membership. According to the company's third quarter 2009 results, medical membership decreased by 25,000, pharmacy membership decreased by 79,000 and dental membership decreased by 386,000.
"The economic downturn has had a significant impact on our customers, said Ronald A. Williams, chairman and CEO of Aetna. "In addition, we must prepare for the impact that health care reform and regulatory changes may have on our business."
In addition to the layoffs, the Hartford, CT-based company plans to consolidate several field offices to reduce real estate costs. However, Aetna said that it is not exiting any markets.
As a result of the plan, Aetna estimates that it will incur about $12 million in severance costs and $28 million in charges related the real estate consolidation.
Furthermore, the health insurer said that it expects to make a similar number of job cuts at the end of first quarter 2010, which would put the total to well over 1,000 workers. The financial impact of those reductions is expected to be announced once a final decision is made.
Aetna employs approximately 35,500 people, nationwide.