NEW YORK, Oct 23: Merrill Lynch & Co. Inc. which is trying to cut costs as its profits slump, on Monday sent a memo to employees detailing severance packages for those who voluntarily leave the Wall Street firm.

Merrill, which already has cut 6,100 jobs this year to trim its work force to 65,900 employees worldwide, is offering severance packages based on how long people have worked for the company, Terry Kassel, senior vice president of human resources, said in a memo obtained by Reuters. Company executives have said they are not targeting a specific number of job cuts.

The payouts will range between 12 weeks and 54 weeks of salary, along with a payment equal to 40 per cent of 2000 bonuses. Those who choose to stay at the company face the possibility of being laid off.

Our objective is to give employees flexibility and be as sensitive as possible, Kassel said in the memo.

Merrill, like most securities firms, is shedding jobs as its bottom line is slashed by a weak stock market environment. Merrill last week said its third-quarter profit fell 52 per cent as its brokerage clients traded less, slashing commissions, and its stock trading revenues fell.

Merrill also said workers who have been at the company for more than two years can request sabbaticals of six to 12 months, during which they will receive 20 per cent of their salary and “most benefits coverage.” But those taking sabbaticals aren’t guaranteed jobs when they come back, the memo said.

Staffers have to make their decision by early November and must get approval from their business group management. The company’s 15,000 US brokers the nation’s largest brokerage force are not included in the programme.

Merrill executives have dismissed reports they have set a head-count reduction target of as many as 10,000 jobs. Managers of various business units are examining their costs and determining what moves to make in order to achieve certain performance goals, executives have said.

This is not a head count-driven exercise, Chief Financial Officer Thomas Patrick told Reuters last Thursday.

Merrill paid out $152 million in severance packages during the third quarter.

Rivals, including Credit Suisse First Boston and Bear Stearns Cos. Inc, recently announced job cuts as weak stock markets cut into businesses like stock trading and investment banking. Credit Suisse First Boston is the US broker-dealer unit of Swiss bank Credit Suisse Group.

Slumping stock markets were further roiled by the Sept. 11, attacks, which forced US equity markets to close for four days.

The attacks knocked Merrill out of its World Financial Center headquarters, which are next to where the World Trade Center’s twin towers used to stand. The displacement cost Merrill $53 million in after-tax expenses. Some workers were scheduled to return to the complex this week and most would be back by November, Merrill executives said on Thursday.

Merrill shares closed at $45, up $1.30 or nearly 3 per cent, in trading on the New York Stock Exchange. Its shares have traded well below their 52-week high of $80 as its quarterly profits slide.—Reuters