Thomson Reuters (TSE:TRI) to cut 2,000 jobs as part of restructuring

Thomson Reuters Corp (TSE:TRI, Mkt cap 42.19B, P/E 27.12, Div/yield 0.46/3.30, EPS 2.03, Shares 736.56M) has announced a restructuring that will reduce its global workforce by 4% as part of efforts to help “simplify and streamline” the business.

About 2,000 employees will be affected by the restructuring, which will take place across 39 countries and 150 locations, the news and information company said on Tuesday.

Employees in the Financial & Risk business and the Enterprise, Technology & Operations Group will be most affected. Chief executive Jim Smith told employees that there will be no decrease in headcount in the Reuters newsroom.

The announcement coincided with the release of Thomson Reuters’ financial results for the third quarter, showing net income of $286m or 36 cents per share, compared with $293m or 36 cents per share in the same period a year earlier.

Revenue rose 1% to $2.74bn before the impact of foreign currency, and was flat when currency effects were factored in.

The company said that it plans to record a charge of approximately $200m to $250m in the fourth quarter of 2016 to cover the costs of the restructuring.

The changes are part of its multi-year effort to streamline the business, Smith said in an interview with Reuters News.

“It’s about simplification and taking out bureaucracy and taking out layers all of which have added complexity and slowed us down,” he said. “These actions are not driven by any reaction to market conditions or in any way coming on the back of underperformance.”

As a result of the fourth-quarter charge, Thomson Reuters lowered its 2016 forecast for underlying operating profit margin to between 16% and 17%, from a range of 18.4% to 19.4%.

Thomson Reuters Corporation is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »

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