Salomon to Cut 800 Jobs, Drop Some Services

Salomon Inc., Wall Street’s premier investment bank, said today it will cut about 800 jobs and phase out its municipal bond, commercial paper and short-term bank liability businesses as part of a major streamlining.

Salomon, parent of the Salomon Brothers investment and brokerage company, said it expects to save $150 million a year through the cutbacks.

The cuts will result in a write-off of $60 million to $70 million in the fourth quarter, Salomon said.

It also said its third-quarter results “will be profitable; however, only marginally so.”

Salomon said the company would target its efforts on profitable, high-margin operations.

Salomon did not say in its statement how it would achieve the cuts of 800 jobs, whether through layoffs, attrition or incentives for retirement or separation, or some combination.