Reuters cuts 1,100 jobs

Reuters is determined to cut costs

Global news and information provider Reuters has confirmed that the group will be cutting 1,100 jobs.

The cuts amount to nearly 7% of Reuters' workforce and represent one of the biggest mass layoffs in the company's 150-year history.

We are accelerating the business transformation programme and taking new actions to drive profit growth in the slower market conditions we expect to continue through to the end of the year

Tom Glocer
Reuters

The company also said on Tuesday that it would speed up its cost-cutting plans.

It now wants to make £85m ($121m) in annual savings by 2002, on top of the £150m ($213m) already planned by 2003.

With the spread of tough trading conditions across the world's equity markets, Reuters said it had seen an increasing number of contract cancellations.

The company's interim pre-tax profits were down 21% to £357m ($507m).

The cutting of 1,100 staff from the company's 16,500 strong workforce follows the announcement earlier this year that 50 top managers were to lose their jobs.

'Sound' results

The company's new chief executive Tom Glocer said the results were "sound" and reflected "a resilient core business".

"We are accelerating the business transformation programme and taking new actions to drive profit growth in the slower market conditions we expect to continue through to the end of the year," he said.

The core Reuters Financial division reported operating profits up 6% to £262m ($372m).

And the company's recently listed electronic broking subsidiary Instinet saw operating profits grow 28% to £108m ($153m) as it expanded into the US.

The figures come a month after Mr Glocer unveiled a restructuring of the group to create four business units - investment banking and brokerage, treasury, asset management and corporate/media.