Dive Brief:
- Cigna plans to lay off roughly 2,000 employees, just under 3% of the company’s workforce, to cut costs by the end of February.
- A Cigna spokesperson called the reductions a “difficult decision” that was made “with deliberate care and focus.”
- The company did not answer questions about what specific roles would be impacted or how much money Cigna expects to save from the reduction. Cigna said it plans to offer transition services for affected employees.
Dive Insight:
Cigna launched an initiative to streamline its operations — including by cutting down its workforce — in the first quarter last year that’s expected to continue through the end of 2026, according to the company’s most recent financial filing.
Cigna executives did not discuss the layoffs during a call with investors on Thursday, though they said they’re continuing to look for efficiencies to help them increase earnings. Though Cigna has largely been insulated from the tsunami of medical costs hitting government programs, given its focus on commercial insurance, the company has dealt with unexpectedly high spending on stop-loss products.
“We remain focused on driving greater affordability and value for the patients and clients we serve while continuing to execute with discipline against our financial targets,” Cigna CFO Ann Dennison said on Thursday’s call.
Cigna’s layoffs, which were first reported by BenefitsPro, follow other recent downsizing announcements from health insurers looking to cut costs during an era of heightened medical spending. For example, CVS’ insurance division Aetna plans to lay off more than 300 people and Horizon Blue Cross Blue Shield of New Jersey plans to let almost 250 employees go this spring.
