(by Mark Riley)

Marsh & McLennan said it would cut its jobs by 5% (3,000) amid the probe scandal launched by the New York State Attorney General Eliot Spitzer.

The company called the step “difficult but necessary” and called the reductions fair.

Marsh’s 3Q profit dropped by 94%, the company said in its statement. The company expected to take $325 million of pretax restructuring charges over six months and ultimately save $400 million a year.

"We recognize the seriousness of the problems we are facing and are moving quickly to correct them," said Marsh’s Chief Executive Michael Cherkasky.