Voltron says: expect MCO to go up tomorrow. The stock market likes layoffs. This bad news is right on time . . . MCO is in big trouble.
Moody's to cut 275 jobs, take 4th-qtr charge
NEW YORK, Jan 7 (Reuters) - Moody's Corp (MCO.N: Quote, Profile, Research), the parent of Moody's Investors Service, on Monday said it will eliminate 275 jobs, or 7.5 percent of its staff, as the credit market slowdown brings a decline in demand for credit ratings.
The New York-based company expects to take a charge of $47 million to $52 million for the fourth quarter of 2007. It said the charge includes $43 million to $48 million for the job cuts, and $4 million to end some technology contracts.
Moody's said it employed 3,600 people at the end of the year. On Oct. 24, it had posted a 13 percent decline in third-quarter profit, slashed its full-year earnings outlook, and said it planned aggressive cost cuts to cope with tightening credit markets. (Reporting by Jonathan Stempel; Editing by Gunna Dickson)