More signs that we haven't turn up for all sectors.
Stan
01/09/02 - Merrill Lynch cuts 9,000 jobs
host.wallstreetcity.com
NEW YORK, Jan 09, 2002 (United Press International via COMTEX) -- Brokerage giant Merrill Lynch said Wednesday it plans to slash approximately 9,000 jobs and will take a $2.2 billion one-time charge in the fourth quarter to help pay for its restructuring.
The nation's largest brokerage also said its fourth quarter net income would be 48 to 50 cents a share.
Analysts on Wall Street that track the broker had been expecting Merrill Lynch to post a net income of 48 cents a share, according to Thomson Financial/First Call.
The firm said it took the decisive action to position the company for improved profitability and growth, including the resizing of selected businesses and other structural changes.
These actions, which will lead to an estimated fourth quarter $2.2 billion pre-tax charge, or $1.7 billion after tax, are expected to yield substantial benefits, including annualized expense savings of approximately $1.4 billion, the firm said.
A substantial amount of these savings is expected to flow through to earnings; a portion will be reinvested in priority growth initiatives.
"Based on a detailed review of all our businesses over the past three months, and our current market outlook, we are moving aggressively to make Merrill Lynch leaner, more competitive, more focused than ever on serving clients in our chosen markets around the world," said David H. Komansky, chairman and chief executive officer, and Stan O'Neal, president and chief operating officer. |
