Citing the economy’s impact on its customers, one of the nation’s largest health insurers is eliminating about 1,200 jobs between now and March 2010.

Aetna announced that it is reducing its workforce by nearly 2% as of Nov. 19, consistent with its goal of aligning cost structure with company membership outlooks for 2010, according to a statement. The reduction will affect 625 employees now, with a similar number of reductions anticipated by the end of the first quarter 2010.

A spokesman for the insurer told IFAwebnews.com that 160 of the job cuts are occurring at Aetna’s Hartford, Conn., headquarters, 65 in Florida and 60 in Pennsylvania, with the rest spread out across the nation.

The result of this round of cuts and ongoing real estate consolidation, according to Aetna, is $40 million after tax savings. No savings estimate has been put on the pending reductions next year.

Ronald A. Williams

Ronald A. Williams, Aetna’s chairman and chief executive officer, noted the recession’s impact on the insurer’s customers and preparation for “the impact that health care reform and regulatory changes may have on our business.

“Streamlining our business now will enable us to improve our competitiveness and redirect resources to areas with a greater potential for future growth,” Williams said in a statement. “Change is never easy but, working from a position of strength, we should be able to manage through the evolving environment.”

The cuts, according to Aetna, are to ensure it can meet its service and commitments to customers, members and others.

Aetna spokesman Fred Laberge told IFAwebnews.com that the cuts are “across a broad variety of staff and business areas” for the insurer.

Laberge added that the job cuts will have “no impact on the brokers and consultants with whom Aetna does business.

“Staff reductions were targeted to ensure that we do not impair our ability to meet our customer commitments,” he said. “We will not be exiting any markets nor will one business be affected,” he said.

Aetna’s cuts come as its largest competitors, WellPoint and CIGNA, have also made recent cuts in the last year, citing the state of the economy.