Aetna to Cut 5,000 Jobs, Take Charges of

December 19, 2000

Aetna Inc. plans to cut 5,000 jobs, or 13 percent of its work force, and take an estimated $565 million in charges in the fourth quarterin an effort to cut costs and boost profits.

The move is Aetna’s first step in an effort to settle problems in its health insurance business since it completed the sale of its international and financial services businesses to Dutch insurer ING Groep last week. Aetna now plans to increase prices significantly, exit unprofitable markets and products, and cut expenses beyond those resulting from market exits and lower membership.

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