By the end of 2008, Marsh & McLennan hopes to save $350 million, the company said in a statement.
"Over the past two years, this management team has successfully achieved $800 million in restructuring savings on time, as promised," said Michael G. Cherkasky, chief executive and president. "These past successes are evidence that the savings announced today can be delivered," he said.
The second-biggest insurance brokerage in the world, New York-based Marsh & McLennan is parent to insurers
Annual revenues are approximately $12 billion, the company said.
In recent years, the company has suffered regulatory setbacks. Putnam specifically was central to mutual fund market-timing scandal, and this month settled once again with the
The restructuring plan calls for most jobs to be cut through attrition, according to the company statement, streamlining its information technology departments, examining its procurement process and perhaps consolidating offices.
The Marsh and Mercer units of the company will be most affected, according to the release.
Restructuring will cause Marsh & McLennan to take $225 million in charges, and will be executed over three years with 15% of the plan implemented this year, 55% in 2007 and 30% in 2008.