Aetna to Take Charge of Approximately $60M to $65 M for Job and Real Estate Actions

The Aetna Insurance Company headquarters building (above centered photo) at 151 Farmington Avenue is the largest brick colonial structure in the U. S. The Phoenix Insurance Company headquarters building (known as the "boat building") is the world's first two sided building. This 1960's glass and steel structure faces the river and is connected to the new Riverfront Plaza downtown.

HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) today announced that it expects to incur a fourth-quarter 2009 charge of approximately $60 million to $65 million, after tax.

This charge is due to the previously announced and completed reduction of approximately 625 positions and real estate consolidation that together are expected to result in a charge of approximately $40 million, after tax, and a similarly sized workforce reduction to be completed by the end of the first quarter of 2010 that is expected to result in a charge of approximately $20 million to $25 million, after tax.

These 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.

Once the company completes the additional job reductions in the first quarter of 2010, Aetna will have approximately 34,300 employees.

Employees affected by the first quarter 2010 job reductions will be notified at a future date to be determined. Eligible employees will receive severance benefits based on length of service as well as outplacement and other support programs. The company is not exiting any markets as a result of this announcement.

Aetna is one of the nation’s leading diversified health care benefits companies, serving approximately 36.3 million people with information and resources to help them make better informed decisions about their health care. For more information, see www.aetna.com.

Contacts:
Media--Fred Laberge, 860-273-4788, labergear@aetna.com,
 Investor Contact--Kim Keck, 860-273-1327, Keckka@aetna.com