WellPoint Layoffs 1,500 jobs : Insurers Get Hit Hard

Posted by Kris | Friday, January 16, 2009 | | 0 comments »

Insurance has always a game of probability and a profitable business in a long term withstanding sudden wrath of nature. Warren Buffet himself made a fortune starting with insurance company ,GEICO if i am not mistaken. The company is still standing now..The mascot is a suave green talking lizard. Only the cash rich & well managed company will survive this current horrendous turmoil.

NEW YORK (AP) -- Health insurer WellPoint Inc. said Friday it will cut about 1,500 jobs to reduce costs as it copes with the U.S. recession.

The Indianapolis-based insurer will eliminate about 3.5 percent of its staff, which currently totals more than 42,000. More than 900 open positions and 600 associate jobs are being eliminated.

Rising unemployment is affecting health insurers because their employer customers have fewer workers to cover.

WellPoint is the largest U.S. health insurer based on membership. It runs Blue Cross and Blue Shield plans in 14 states.

Other health insurers also have been cutting jobs. Philadelphia-based Cigna Corp. said earlier this month it would cut 1,100 jobs, and Hartford, Conn.-based Aetna Inc. said last month it would cut 1,000 jobs.

Minnetonka, Minn.-based UnitedHealth announced plans to cut 4,000 jobs last July.

WellPoint will report its fourth-quarter results Jan. 28.