P.M. BRIEFING : Merrill Lynch to Reorganize

Merrill Lynch & Co. today announced a broad-based management shake-up that should help the nation’s largest securities firm rein in costs but may result in the loss of several hundred jobs.

The move includes establishing six core business divisions that will replace the two-sector structure that has been in place since 1984. The new divisions, each with a new executive vice president, are: private client, asset management, insurance, investment banking, debt markets and equity markets.

While a spokesman said the restructuring is not “a layoff-driven process,” he added that the firm is “committed to reducing our cost base wherever possible.”

The spokesman said that the new vice presidents “are going to go forward to see where they can consolidate support operations.” While there are no specific layoffs targeted, he did say that some jobs could be eliminated where there are redundancies.

“It’s possible over the next several months that they will reduce the work force by several hundred,” he said.

The six new divisions will not operate autonomously. Under the two-sector structure, Merrill’s individual-investor operations were separate from its capital markets group, which failed to foster cooperation between the two groups, reports said.