Hartford Financial Services said it will cut 500 jobs across thecountry as part of a company initiative to reduce expenses by anestimated $250 million by the end of 2009.

The company employs about 31,000 people.

Hartford spokesman David Snowden said the company's initiativeincludes both non-salaried expense reductions and workforcereductions.

Mr. Snowden said the company will cut jobs in life,property-casualty and corporate operations, with announcementsregarding the layoffs occurring by the end of this month.

He added that 125 of the affected jobs are located in thecompany's Hartford, Conn. headquarters, with the rest of the jobslocated in offices around the country. Actual last day ofemployment for the affected workers will vary depending on thedepartment, Mr. Snowden said.

The Hartford reported a 2008 third-quarter net loss of more than$2.6 billion last week, but Mr. Snowden would not confirm whetherthe initiative to reduce the 2008 expense run rate was directlyconnected to the announcement. Regarding the initiative, he said,“It's certainly something that's been in the works for sometime.”

Mr. Snowden added, “In today's economy, companies are makingprudent spending decisions.”

Affected employees will be eligible for severance packages aswell as access to the company's career transition services “toexplore positions both inside the company and outside the company,”according to Mr. Snowden.

Additionally, Moody's Investors Service has downgraded thesenior unsecured debt rating of The Hartford Financial ServicesGroup Inc. to “A3″ from “A2,” and its short-term debt rating to“Prime-2″ from “Prime-1.” The rating outlook is stable.

Jeffrey Berg, senior vice president of Moody's, said, “TheHartford's recently released final third-quarter results andcontinuing weakness in both credit and equity markets haveconfirmed our concerns.”

Moody's also affirmed the company's lead p-c and life insuranceoperating companies' “Aa3″ insurance financial strength. Theratings outlook for the life insurance operating subsidiariesremains negative, after being changed to negative from stable onSeptember 25 and affirmed on October 8.

The outlook for the p-c insurance operating companies remainsstable.