Insurance Broker Aon to Cut 3,000 Jobs

November 2, 2000

Aon Corp. reported today it will cut 3,000 jobs, or 6 percent of its work force, and take up to $325 million in charges over the next few quarters in an effort to overhaul its operations.

Aon’s third-quarter profits, also reported today, rose 1 percent to $139 million, or 53 cents per share, compared to $138 million, or 52 cents, in the same quarter 1999, missing analysts’ forecasts by a penny per share. The company reported it would take between $250 million and $325 million in pre-tax charges for the reorganization, the majority of which would be recorded in the fourth quarter of this year and the first quarter of 2001.

The remainder would be recorded in the second quarter of next year. The charges are mostly for severance costs of the 3,000 staff to be cut from Aon’s 50,000 total, plus other reorganization costs. Aon also said it is likely the company will suffer temporary revenue shortfalls during the early stages of the plan.

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