HARTFORD, CT – Aetna announced last week that it is reducing its workforce by approximately 625 positions.

The Hartford, Conn.-based insurer said it is aligning its cost structure with its membership outlook for 2010.

The cuts amount to almost 2 percent of its approximately 35,500 employees. Aetna officials say they expect to incur a restructuring charge of approximately $40 million, after tax.

In addition, the company said a similar number of workforce reductions is anticipated by the end of the first quarter of 2010, and the financial impact of that action will be disclosed once decisions are made final.

“The economic downturn has had a significant impact on our customers. In addition, we must prepare for the impact that healthcare reform and regulatory changes may have on our business,” said Ronald A. Williams, the company's chairman and CEO. “Streamlining our business now will enable us to improve our competitiveness and redirect resources to areas with a greater potential for future growth. Change is never easy, but working from a position of strength, we should be able to manage through the evolving environment.”

Officials said eligible employees would receive severance benefits based on length of service as well as outplacement and other support programs.

Aetna also expects to consolidate field offices in some locations to reduce real estate costs.