Reuters to cut jobs at software development operations
23 October 2003 | 6032 views | 0
Reuters is to cut 'several hundred' jobs as its transfers its software development operations from 18 cities around the world to four new hubs, according to a report in the Financial Times.
The move is the latest phase of the group's cost cutting programme. The FT says Reuters CEO Tom Glocer has confirmed the company would increase job relocations to low-cost markets in Thailand and India.
According to the report Reuters is doubling staffing levels at its Bangkok centre, one of the four new hubs, to 600 by the end of next year. The group is also expanding its centre in Bangalore, India, to include software development. Reuters is already moving its core market data content division to the city in a separate move to cut costs.
Glocer says the changes would lead to significant savings in employee costs. Salaries for software programmers in Bangkok are more than 80% lower than in the US.
Under the latest plans, the group's European development operations will move to Paris, resulting in the closure of sites in London, Nottingham, Hamburg and Geneva. Development operations will close in Hong Kong, Singapore and Tokyo as part of the Asian shift. Reuters is also consolidating centres in nine US cities including New York, Denver and Kansas City around a hub in St Louis.
Glocer says the group's development locations "were a crazy way to do business - it lowers capital utilisation and it's really expensive".
Separately Reuters has signed a deal to provide news and financial information direct to the cockpit of BMW's seven and five series cars sold in the UK.
Reuters content will be integrated with BMW Online, a Web portal providing drivers with personalised content that can be accessed via the car's control display in the dashboard.
Tom Kunze, launch management, BMW Group, says: "Taking into account the profile of our target audience we were aware that we needed to include news and financial information within our content offering."