NEW YORK CITY, United States – The global financial information group Thomson Reuters said Tuesday, October 29, it would cut some 4,500 jobs in its finance operations by the end of 2014 after reporting a drop in profits.
The cuts, outlined in documents accompanying its quarterly results, are deeper than the expected 2,500 jobs the company said earlier this year would be eliminated by the end of 2013.
The company, which also operates the Reuters news agency, is in the midst of a vast restructuring which is notably hitting its financial information division which provides terminals for traders and other market professionals.
The company said its net profit for shareholders for the third quarter slumped 39% from a year ago to $271 million and revenues dipped 3% to $3.1 billion.
Chief executive James Smith said nonetheless that the company is showing "positive momentum," citing higher net sales in its financial division for the first time since the second quarter of 2011.
"Though we continue to expect challenging conditions in the coming quarters –particularly with the largest global banks – these are significant steps in returning our financial business to a growth footing," he said in a statement.
"Our improving track record on execution gives me the confidence to now move even faster in our transformation work. We will pick up the pace of efforts to simplify and streamline our organization, to shift resources behind the most promising growth opportunities and to use every tool at our disposal to drive value creation for all our stakeholders."
The company said in February it would eliminate some 2,500 jobs in its Finance & Risk operations.
Earlier this month, Smith warned employees of "tough decisions" ahead for the media and financial information group. – Rappler.com