Wednesday 13 December 2017

Thomson Reuters to cut 2,000 jobs worldwide as part of streamline business restructure

Pedestrians walk outside the Thomson Reuters headquarters in New York. Photo: Bloomberg News
Pedestrians walk outside the Thomson Reuters headquarters in New York. Photo: Bloomberg News

Thomson Reuters said it would eliminate about 2,000 jobs worldwide and take a fourth-quarter charge of $200m to $250m to streamline its business.

The restructuring across 39 countries and 150 locations would mainly affect the Financial & Risk business and the Enterprise, Technology & Operations Group, the news and information company said. It employs about 48,000 people globally, a spokesman said.

"We are taking these actions now because we see a real opportunity to break down internal silos, position ourselves closer to customers and become more agile," Chief Executive Officer Jim Smith said.

Thomson Reuters is the parent of Reuters News. There will be no decline in headcount in the Reuters newsroom, according to a memo to employees.

The company earlier reported slightly lower third-quarter net earnings. Net income was $286 million or 36 cents per share, compared with $293m or 36 cents per share, a year earlier.

Excluding special items, earnings were 54 cents per share. Analysts on average were expecting 47 cents, according to Thomson Reuters I/B/E/S/.

Revenue was up 1pc at $2.74bn before currency effects and was flat when they were factored in. The company reiterated its forecast of 2 percent to 3pc revenue growth for the year.

In the Financial & Risk segment, which provides news and analytics to financial services companies, sales outpaced cancellations for the 10th straight quarter.

Overall, unit revenue was flat at $1.52bn.

Thomson Reuters competes for financial customers with Bloomberg LP, as well as News Corp's Dow Jones unit.

Because of the charge, the company lowered its 2016 forecast for underlying operating profit margin to between 16pc to 17pc, from 18.4pc to 19.4pc.

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