Cigna to Cut 2,000 Health-Care Jobs

Cigna Corp., the third-biggest U.S. health insurer, will cut about 2,000 jobs as part of a restructuring in its health-care business.

The job cuts will increase expenses by about $65million in the fourth quarter, the company said. The restructuring is expected to save $45million to $55million a year in 2003 and beyond.

Cigna, which has 14.2 million customers, has struggled with rising medical costs, while job cuts have slowed growth in its employer health plans. The insurer also has had lower profit in its pension business as falling stock prices cut into management fees it charges corporate customers.

Shares of Philadelphia-based Cigna rose $2.21 to $93.21 on the NYSE.