MMC said the cuts would primarily hit Marsh and Mercer Human Resource Consulting.

Richard Myers, a spokesman for MMC, said specific cuts would not be announced, but the reductions would probably take place over the next two years.

In addition to Marsh and Mercer, MMC is the home of reinsurance broker Guy Carpenter, investment firm Putnam and investigative services Kroll.

MMC said it would seek to create savings on information technology by establishing global centers for service, infrastructure and network operations. It also plans to improve procurement management and consolidate its data centers and servers.

On the real estate side, the company said it plans to dispose of excess space and improve its management of facilities.

In a statement, Michael G. Cherkasky, president and chief executive officer of MMC, said actions that have been taken and will be taken in the first quarter of 2007 would realize half of the total savings.

"Over the past two years, this management team has successfully achieved $800 million in restructuring savings--on time as promised," he said.

In an analyst's note David Small with Bear Sterns called the announcement from MMC "mixed news."

"On one hand, this action gives investors a clearer road map as to how the company will begin to expand margins," he said. "However, on the other hand, Marsh will be focused on another restructuring program while most of its competitors are finishing their own major restructuring programs and are now focused on their clients and gaining share."

He said employees concerned about their jobs may not focus on clients, which could affect 1/1 renewals. The announcement also clouds the future profitability of MMC, possibly through 2008.

Mr. Small said Bear Stearns is reviewing its estimates for MMC.