Page last updated at 10:44 GMT, Monday, 19 May 2008 11:44 UK

Thomson Reuters to axe 140 jobs

Thomson Reuters sign outside its Canary Wharf offices
Thomson bought Reuters in a deal worth 8.7bn

About 140 Thomson Reuters journalists will lose their jobs as part of steep cost-cutting plans, the firm says.

By 2009 about 5% of the information group's 2,500-strong editorial base at Reuters News will be cut.

A total of 1,500 jobs are expected to go across the whole of Thomson Reuters after Canadian publisher Thomson bought UK's Reuters in a 8.7bn ($17bn) deal.

But the firm would not comment on that figure, and would only say the cuts would be made at a divisional level.

Thomson Reuters employs a total of 50,000 staff globally.

The merged firm, which is listed on the London Stock Exchange and in Toronto, is hoping to save $750m a year from its third year of trading - more than the $500m initially announced.

'Natural overlap'

Some of this will come from the headcount reduction in its global newswire service, with about half of the 140 job cuts to be made in Europe, according to an internal memo seen by the BBC.

"When two similar and once competing organisations come together, there is natural overlap and duplication in coverage," the memo said.

"We must assess areas of strength, weakness, overlap and opportunity to build a combined organisation which can best serve our customers," it added.

The firm said it would immediately begin talks with appropriate unions, works councils and staff members

Under new development plans to strengthen its multimedia offering, Thomson Reuters plans to create about 50 new roles - thought to be involved with financial web videos for clients - which it hopes will offset some of the job losses.

However, the firm is also reportedly poised to cut jobs in sales and technical support and in its content and technology division.

Most of Thomson Reuters' profits depend on providing news and financial data on stocks, currencies and bonds to traders, stockbrokers and banks.


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