Specific cuts will not be announced, but the reductions will probably take place over the next two years, according to an MMC representative, Richard Myers.

In addition to Marsh, Putnam and Mercer, MMC is the home of reinsurance broker Guy Carpenter and investigative service specialist 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 added.

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

Mr. Small said Bear Stearns is reviewing its estimates for MMC in light of this month's developments.

Meanwhile, after months of saying it wouldn't happen, MMC's CEO said the company is shopping Putnam.

"Over the last few months there have been repeated inquiries from parties interested in either acquiring or partnering with Putnam," Mr. Cherkasky said in a statement released before the close of the stock market on Sept. 19.

"Therefore, in consultation with MMC's board, I decided it was in the interest of our shareholders to do a market check to determine the value others would put on Putnam," he added.

"We have just commenced this process and have not decided to take any specific action in regard to Putnam at this time," he said.

For months, Mr. Cherkasky has held firm in stating that MMC would not divest itself of any of its parts.

However, after a disappointing second-quarter report, where both Marsh and Putnam continued to show declines, an analyst chorus has grown, calling for divestment of some parts of the company.

MMC has been hit with two major legal actions where New York Attorney General Eliot Spitzer challenged activity in both Putnam and Marsh.

The result has been settlements costing the company about $1 billion and cuts in revenue after giving up a chunk of its retail contingency commissions as part of the settlement agreements.

MMC's stock, which has taken a tremendous hit since the revelations, closed up $1.19 at $29 a share on the news.

In an analyst's note on the news, Mr. Small said Putnam would most likely be spun out from MMC to unlock the company's value, but questioned if this was a true change in approach.

"We believe this would certainly be a step in the right direction, as we have for some time believed that MMC trades at a discount to its sum-of-the-parts valuation," he wrote, "although it is unclear whether this is a strategy change or just another price check."