US HEALTH benefits company Aetna is shutting down its operations in Casteleisland, Co Kerry, with the loss of 100 jobs.

Only three years ago it announced an expansion in Castleisland supported by Government agencies.

The company is involved in a cost-cutting exercise globally and is outsourcing its international service operations.

It wants greater flexibility in downsizing or upsizing workforces and also to be nearer emerging markets in Asia and the Middle East, a company spokeswoman said yesterday. However, the spokeswoman said the decision on the 23-year-old Castleisland facility was “by no means” a reflection on the cost of doing business in Ireland or on its local workforce.

Aetna is in discussions with a number of overseas vendors to handle the claims and customer service functions carried out by Kerry staff.

Aetna is one of the largest health benefits company in the United States, offering benefit-claims processing as well as health management programmes for multinational employers, governments and individuals. It has been shedding membership, however, and sees Asia and the Middle East as growing markets.

In total, 300 workers globally are affected by the cuts in Hong Kong, Shanghai and the US, as well as Ireland.

Only three years ago Aetna announced an expansion of its Kerry operation, supported by Government agencies.

That announcement was made by then tánaiste Mary Coughlan and the company’s longest serving workers received special recognition awards.

Most of the jobs are likely be gone by September and the operation shut down by December, the company indicated in a statement yesterday.

“The decision has been a difficult but necessary one to make for the company, particularly in the light of the dedication and commitment shown by its Castleisland employees and the importance of the facility to the local economy,” the statement said.

Staff will receive redundancy pay of two weeks for each year of service plus bonuses.

An employee with seven years of service would be offered a redundancy payment in the range of €18,000, depending on salary and other factors, the company said.