Media

Thomson Reuters to cut 2,000 jobs and take $200m-plus charge

Headcount cut in 39 countries not likely to hit Reuters newsroom, according to memo

Thomson Reuters: restructuring across 39 countries and 150 locations will mainly affect the financial and risk business and the enterprise, technology and operations group, the news and information company says.
Thomson Reuters: restructuring across 39 countries and 150 locations will mainly affect the financial and risk business and the enterprise, technology and operations group, the news and information company says.
Tue Nov 01 2016 - 12:47

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

The restructuring across 39 countries and 150 locations would mainly affect the financial and risk business and the enterprise, technology and 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 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.

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The company earlier reported slightly lower third-quarter net earnings. Net income was $286 million or 36 cents per share, compared with $293 million 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 Institutional Brokers’ Estimate System.

Revenue forecast

Revenue was up 1 per cent at $2.74 billion before currency effects and was flat when they were factored in. The company reiterated its forecast of 2-3 per cent revenue growth for the year.

In the financial and 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 $1.52 billion.

Thomson Reuters competes for financial customers with Bloomberg, 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 16 per cent and 17 per cent, from 18.4 to 19.4 per cent. – (Reuters)