Thomson Reuters Plans to Slash 3,200 Jobs in Next Two Years
December 04 2018 - 1:17PM
Dow Jones News
By Kimberly Chin
Thomson Reuters Corp. plans to shed 3,200 jobs over the next two
years as part of a pivot toward providing software services over
producing content.
Thomson Reuters, which provides tools for corporate, legal and
tax professionals and operates Reuters News, said Tuesday it would
reduce its global staff by about 12% from current levels and its
global office footprint by 30% by 2020. The planned head count
would bring its staff to 23,800 from 27,000 currently. The company
didn't say where the cuts would be made.
It also plans to shrink its number of offices to 133, from the
2012 count of 517.
Shares in the company were up 2.1% to $50.87 in midday trading
after the company made the announcement during an investor
event.
The company said that the workforce reduction is part of a plan
to run a leaner organization following the roughly $20 billion sale
of a majority stake of its Financial & Risk business, which
includes the financial-services terminal Eikon, to private-equity
firm Blackstone Group LP.
About 87% of Thomson Reuters's revenue is delivered
electronically or from its software and services business. Thomson
Reuters said it sees an opportunity to expand its share in a
content and software services market that is expected to grow to
about $44 billion annually from about $32 billion today.
Reuters News, whose roots date to 1851, makes up a small share
of Thomson Reuters's total revenue. Last year, the unit accounted
for about $300 million in revenue, or less than 6% of the 2017
total of $5.3 billion.
Reuters News competes with Dow Jones, publisher of The Wall
Street Journal, in providing financial news and information.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
December 04, 2018 13:02 ET (18:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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