Thomson Reuters to cut 2000 jobs
01 November 2016 | 7125 views | 0
News and data giant Thomson Reuters is axing around 2000 jobs, mainly at its financial and risk business and the recently created enterprise, technology and operations group.
Reporting its third quarter results, the company says it will also take a fourth quarter charge of $200 million to $250 million connected to the cuts, which affect about two per cent of its workforce.
The decision is designed to accelerate Thomson Reuters' transformation programme by simplifying and streamlining the business and will see run-rate cash savings next year at about the same level as the charge.
Third quarter net income was $286 million, down slightly on the $293 million during the same period the previous year, on revenues that were essentially flat at $2.74 billion.
Meanwhile, the firm is expected to see a full year underlying profit margin of between 16% and 17%, not the previously forecast 18.4% to 19.4%.
Jim Smith, CEO, Thomson Reuters, says: "Our core subscription businesses are moving in the right direction, our cost controls are working and we are increasingly confident in our execution capability. That is why we are going to pick up the pace of our transformation efforts."