CIGNA (NYSE: CI) announced today several actions in response to the economic downturn, 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.
Officials said the effect on the Chattanooga office is not yet known.
CIGNA employs 2,000 people in Chattanooga. It is the second largest campus for CIGNA HealthCare.
Officials said the Tennessee market has been the fastest growing market for CIGNA in the last four years. CIGNA serves 560,000 Tennesseeans today versus 360,000 just four years ago.
CIGNA employs 3,000 people across all of Tennessee with major offices in Chattanooga, Nashville and Memphis.
As a result of the actions, CIGNA expects to incur approximately $30 million-$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 support.
CIGNA will provide more information on its cost reduction charge during its fourth quarter earnings call currently scheduled for Feb 5.