New York City-based brokerage giant Marsh & McLennan Cos. revealed it would lay off about 3,000 employees to reduce annual expenses by $400 million. About three-quarters of the layoffs will occur in the insurance and risk management sectors, the company said in reporting third quarter results. The company also reported the near-term effect of the elimination of market service agreements that have become the target of investigations by New York Attorney General Eliot Spitzer and state officials across the country. Market services revenues declined to $46 million in the third quarter of 2004 from $177 million in the prior year. Since the New York Attorney General filed a civil lawsuit on Oct. 14, Marsh said it has “acted quickly and decisively” to address legal and regulatory issues and restore confidence in the company. New leadership was installed. Michael Cherkasky was named president and CEO of Marsh upon the resignation of Jeffrey Greenberg, former chairman and CEO.
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