Merrill to Slash Bonuses 50%

Still facing the fallout from the sub-prime meltdown, the firm slashes pay for 60,900 employees
By Jim O'Neill,  Newser User
Posted Dec 3, 2008 7:35 AM CST
People walk past the Merrill Lynch building in New York.   (AP Photo/Brian McDermott, file)
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(Newser) – Merrill Lynch, facing losses of $13.3 billion this year and with revenues off 96% from a year ago, will slash year-end bonuses at least 50%, Bloomberg reports. Some employees may face steeper cuts. Merrill and Bank of America, which agreed to acquire the failing investment bank earlier this year, received $25 billion from the federal rescue fund.

Without any bonuses, Merrill is on track to pay its 60,900 employees an average of $184,00 this year, compared to $248,000 last year. The company’s revenue through September was $834 million, down from $19.4 billion last year.