WellPoint hit by 61 percent loss in Q4 2008, plans job cuts

WellPoint has been hit by a substantial loss for the fourth quarter, with net income falling by 61 percent as the plan struggles with investment losses and the impact of rising U.S. unemployment numbers. The plan has also seen full-year income drop by more than 25 percent. In response, it expects to cut 1,500 jobs from its roster.

WellPoint reported net income of $331.4 million for the fourth quarter of 2008, as compared with $859 million the previous year. Yearly net income dropped from $3.3 billion in 2007 to $2.5 billion in 2008.

However, it did manage to post a slight operating revenue increase, reaching $15.4 billion for the year as opposed to $15.3 billion in 2007. Still, that gain was swamped by other factors, including investment losses of $543.2 million in the fourth quarter.

To learn more about the plan's financial situation:
- read this Modern Healthcare article (reg. req.)

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