Cigna to cut 80 jobs

Monday, May 3, 2010
Cigna Healthcare will be closing the doors at the end of June as the lease runs out on the building at 2108 S. Horton St. Of the 270 employees, 190 will be transitioning into a work-at-home situation while the other 80 will lose their jobs. (Michael Pommier/Tribune)

As a result of the work-at-home arrangement transitions announced March 5, the Fort Scott Cigna Healthcare's 270-strong workforce will suffer a decrease of about 30 percent.

According to Cigna Healthcare Spokesman Joseph Mondy, the cuts are determined by the type of work required by each position. He said the cuts will impact the claims processors.

"We will be eliminating roughly 80 positions," he said. "Most of the job eliminations will be impacting claims processors. Most of the work-at-home assignments will be folks who are managing the calls."

Although some have ended their employment and others have already begun their work-at-home transition, Mondy said the transition will not fully take place until June 25, when the lease on the building runs out.

"Their jobs will end when we leave the building," he said.

Not all is grim for those roughly 80 employees who will be out of work. According to Mondy, Cigna is working with these employees to find another job within Cigna or another similar company.

"These are top quality people," he said. "That is why it was a hard decision to make."

According to Mondy, cost reduction was the primary reason behind the transition. The transition is being made in several locations in addition to utilizing more automated aspects and "24-7 operations" to reduce the overall cost. Cigna Healthcare is operating work-at-home operations for one-third of its claims examiners.

The amount of savings Cigna will see as a result of the cuts and work-at-home arrangements is not available. When asked about the savings Mondy said, "We don't do those kinds of projections."

Cigna has been in Fort Scott for two years after acquiring Great West Health Care in 2007.