Marsh to eliminate 750 staff positions

Marsh & McLennan Companies, Inc. (MMC) is planning to save about US$350 million by 2008, in part through the reduction or attrition of 750 staff positions.”Beginning a year ago, we initiated an effort to rationalize MMC’s IT infrastructure, institutionalize firm-wide best practices, automate systems, and eliminate redundancies,” Michael G. Cherkasky, MMC president and CEO, said in a press release. “Actions that have already been taken and will be taken through the first quarter of 2007 will result in the realization of approximately half of the total savings.”MMC’s changes are intended to enhance operational efficiencies and improve profitability, the company announced. They are the product of a comprehensive review of information technology, real estate, corporate functions, and operating company business processes.MMC said its announced changes will “improve the ability of MMC’s operating companies to provide exceptional client service in the most efficient manner. While these savings include managed attrition and staff reductions of approximately 750 currently identified positions, the majority of the savings will be achieved from more efficient processes.”Company-wide changes in IT infrastructure include: *establishing global centers for service, infrastructure, and network operations; *improving procurement management; and *consolidating key architecture, such as data centers and servers. In addition to infrastructure initiatives, MMC expects additional savings from targeted profit enhancement initiatives and business process and organizational improvements at the operating company level. “Marsh and Mercer Human Resource Consulting are the MMC operating companies that will be affected most significantly by these actions,” the company announced.MMC expects to record approximately 15% of the anticipated US$225 million in charges this year, approximately 55% in 2007, and 30% in 2008.”Over the past two years, this management team has successfully achieved US$800 million in restructuring savings-on time and as promised,” Cherkasky said. “These past successes are evidence that the savings announced today can be delivered.”