Tuesday, November 09, 2004

Marsh & McLennan to Layoff 3,000 Employees

The story:

Marsh & McLennan Cos. (MMC), the financial-services titan facing accusations of bid-rigging, announced plans to cut 3,000 jobs, or about 5% of its work force. About 75% of the job cuts announced Tuesday will come from Marsh's risk and insurance services unit. The cutbacks will result in pretax charges of $325 million over the next six months and lead to annual cost savings of $400 million, the company said.

The numbers behind the story:
  • For the third quarter, Marsh reported net income of $21 million, or four cents a share, down sharply from $357 million, or 65 cents a share, a year earlier. Revenue increased 4.7% to $2.97 billion from $2.84 billion.
  • Putnam had $209 billion in assets under management at the end of last month, down from about $280 billion before the mutual fund trading scandal enveloped Putnam and several rivals last fall.

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