Marsh to Cut More Jobs this Year
Executives at Marsh & McLennan Cos. Inc. said Wednesday that the company plans to cut 900 additional positions within its Marsh Inc. brokerage unit; this is in addition to more than 500 positions eliminated in the first half of 2008.
The layoff plan was announced on the heels of Marsh's report of a 7.6% rise in revenue for the first six months of 2008 to $2.44 billion, with underlying revenues up 2%. In the second quarter, Marsh's revenues rose 7.7% to $1.21 billion, with underlying revenues up 3%, it said. Underlying revenues measure the change in revenue before the impact of acquisitions and dispositions and currency exchange fluctuations.
In a conference call with analysts, Marsh Chairman and Chief Executive Officer Dan Glaser said he was pleased with Marsh's performance in the second quarter and outlined further plans to improve the brokerage's financial position, including more layoffs.
After eliminating 150 positions at Marsh in the first quarter and 360 positions in the second quarter, Mr. Glaser said Marsh will eliminate an additional 900 positions in 2008.
"We are being surgical with our reductions," Mr. Glaser said on the analyst call. Of the 900 job cuts, about 200 of the roles will be outsourced and another 100 will be managed through attrition.
The "lion’s share" of the remaining cuts will come from Marsh in the United States, he said.
In addition to job eliminations, Mr. Glaser said Marsh is in the process of changing its operating model in the United States to better position the firm for growth and margin expansion. Marsh plans to better segment its business by account size, offering different service platforms for the different segments. It also is in the process of concentrating its insurance placement activities within various placement hubs throughout the United States, Mr. Glaser said.
Published on August 7, 2008
Are you a retail Agent Looking for a Quote?