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Reuters to cut 3,000 jobs
LONDON, England (CNN) -- Reuters said on Tuesday it would slash 3,000 jobs as it posted a record loss. The new job cuts are part of a three-year plan to revive the fortunes of the world's largest provider of financial information as sagging financial markets force many of its big investment bank clients to cut thousands of jobs globally. Reuters, which provides news, data and trading facilities to banks, brokerages and fund managers worldwide, made a full-year net loss of £394 million ($631 million), the biggest in its 151-year history. Reuters has already cut 3,200 staff, or more than 10 percent of its workforce, over the past two years, in an attempt to slash costs as revenue declines. The company now hopes to save £440 million by 2006. Chief Executive Tom Glocer predicted a 12 percent operating profit margin in 2003, before restructuring charges of about 160 million pounds in that year alone. "I think Reuters is well worth fighting for," he said, unveiling his "Fast Forward" strategy to re-focus the company on financial information and away from pure technology. "What I am trying to do is shape Reuters in a way to survive profitably. even in a very long bear market, but at the same time provide a platform for growth when the markets turn." According to estimates, about 100,000 jobs have been lost in the investment banking industry – which accounts for a third of Reuters' revenue. Fewer bankers mean fewer information screens in a market where Reuters and unlisted Bloomberg LP are the two major suppliers of news and prices. Reuters news and data reaches 493,000 desktops -- down 17 percent, many of them in financial institutions, including investment banks, brokerages and fund managers. But stock markets have fallen for the last three years – the first time that has happened in 60 years. The latest round of jobs cuts is expected to cost £340 million over the next three years, the company said. Revenue fell 8 percent to £3.6 billion. The company predicted "recurring revenues" would fall by nine percent in the first-quarter of 2003 and "somewhat" more in the second quarter. Reuters (RTR) stock, which had fallen about 70 percent over the past year, slumped 8 percent to 141 pence in early London trading on Tuesday.
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