Merrill Lynch discloses 9,000 job cuts in bid to improve profits

NEW YORK - Merrill Lynch & Co., the nation&#39;s biggest brokerage firm, said it has cut 9,000 jobs, or nearly 14 percent of its work force, as part of a plan to cut costs by $1.4 billion a year and boost profitability in a tough environment for financial services companies. <br> <br> Merrill Lynch said Wednesday the steps would result in a pre-tax charge of $2.2 billion against its earnings in the recently completed fourth quarter. <br> <br> It also forecast that its earnings before charges would be between 48 cents and 50 cents a share for the fourth quarter and that revenues would be 8 percent below what it reported for the third quarter of 2001. <br> <br> Analysts surveyed by Thomson Financial/First Call had expected Merrill to report earnings of 48 cents a share for the last three months of 2001. <br> <br> The financial services industry has suffered due to the economic slowdown around the world and the Sept. 11 attacks in the United States. <br> <br> David H. Komansky, chairman and chief executive, said the moves would make the company &#34;leaner, more competitive, more focused than ever on serving clients in our chosen markets around the world.&#34; <br> <br> The company said half of the job cuts are from divestitures and discontinued business and half through voluntary separations in its work force. With the cuts, Merrill has reduced its work force by 21 percent, ending 2001 with 57,000 employees, down from 72,000 at the start of the year. <br> <br> It said other components of the charge being taken in the fourth quarter include consolidating its private client offices in the U.S., Europe, Asia and Australia and writedowns of certain technology assets. <br> <br> Earlier Wednesday, its Japanese unit, Merrill Lynch Japan Securities Co., said it was shedding 1,200 jobs and closing 20 of its 28 branch offices to scale back its money-losing retail operations. <br> <br> All of the affected employees outside Japan have been informed, Merrill officials said, and the vast majority of the cuts have already occurred. <br> <br> Komansky said the cuts have been &#34;extremely targeted and disciplined to avoid cutting into muscle of <br>

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