After $6 billion in new write-downs caused Merrill Lynch & Co. Inc. to post a $2.14 billion loss in the first quarter, the company said it would cut 4,000 jobs, the Associated Press reported.

In the first quarter of 2007, the company had a profit of $2.11 billion. Revenues in the first quarter of 2008 were affected by losses in its fixed-income trading business and a 40 percent drop in investment banking fees. Total revenues fell 69 percent to $2.93 billion from $9.6 billion a year ago.

Risky investments in mortgage-backed securities caused Merrill Lynch to face at least $24 billion in write-downs. But company CEO John Thain said the company has $82 billion of excess liquidity to help protect it against rocky economic conditions. Though he believes the situation won’t improve in the next couple of quarters, he said he is hopeful for the full-year 2008 results.

Thain joined Merrill Lynch four months ago and has pledged to clean up the firm’s balance sheet and take steps to make it more profitable. He has helped secure more than $12 billion of new capital. The layoffs are a new addition to his plan, which will reduce the company’s work force 10 percent, excluding financial advisers and investment associates. Merrill Lynch will incur a restructuring charge of $350 million in the second quarter related to the layoffs.