Thomson Reuters to cut 2 000 jobs worldwide

Financial news business says cost of restructuring could hit US$250m as it reports one percent third quarter revenue growth to US$2,74bn. Thomson Reuters employs about 48 000 staff globally. Photograph: Carlo Allegri/Reuters 

Thomson Reuters is to cut  2 000 jobs from its global workforce and swallow up to US$250m (£204m) in restructuring costs as part of a move to “simplify and streamline” its financial news and data business.

The company, which employs about 48 000 staff globally, said there would be no cuts from the Reuters news operation.

“We do not expect any impact on headcount in the newsroom,” said a spokesman for the company.

Thomson Reuters, whose competitors include Bloomberg and News Corp’s Dow Jones, said the cuts would result in the company booking a restructuring charge of US$200m to $250m in the fourth quarter.

“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,” said chief executive Jim Smith, in an email sent to staff as the company reported its third quarter results on Tuesday.

Thomson Reuters said the US$200m-US$250m charge was “intended to accelerate the pace of the company’s transformation programme by further simplifying and streamlining the business”.

The company said the charges incurred from the cuts would largely come from two sectors: financial and risk, and the enterprise, technology and operations group that was created in January.

“Our core subscription businesses are moving in the right direction, our cost controls are working and we are increasingly confident in our execution capability,” said Smith. “That is why we are going to pick up the pace of our transformation efforts.”

Thomson Reuters said the subsequent cash savings from 2017 would be of a “similar magnitude” to the restructuring cost.

“Some of the savings [will] be reinvested in the business,” the company said.

The company reported that revenues at Reuters news fell one percent year-on-year to US$73m in the three months to the end of September. The operation reported a US$61 m loss for the quarter, up from US$51 m at the same time last year.

Thomson Reuters said total revenues rose 1% year-on-year in the third quarter to US$2,74 bn.

“It is encouraging to see our continued progress flow through in the third-quarter numbers,” said Smith.

The company reported net earnings of US$286 m in the third quarter to the end of September, down from US$293 m. It said it expected “low single-digit” revenue growth of two percent to three percent for the full year.  – www.theguardian.com