Aetna Inc. (NYSE:AET) expects to spend up to $25 million in the first quarter to eliminate about 600 jobs.
Aetna, Hartford, earlier announced that it would be spending about $40 million in the fourth quarter of 2009 to eliminate about 625 jobs and consolidate real estate.
Aetna said at the time that it would make similar cuts in the first quarter of 2010.
The fourth-quarter 2009 and first-quarter 2010 actions "relate to Aetna's previously announced plan to reduce its workforce based upon the company's membership outlook for 2010 and in preparation for the impact that health care reform and regulatory changes may have on Aetna's business," the company says.
Aetna expects to emerge from the job cuts with about 34,300 employees.
"Eligible employees will receive severance benefits based on length of service as well as outplacement and other support programs," Aetna says. "The company is not exiting any markets as a result of this announcement."
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