Thomson Reuters to cut 3,000 jobs as earnings dip
30 Oct 2013
Newswire and information services major Thomson Reuters plans to eliminate 3,000 jobs, involving about 5 per cent of its worldwide workforce, in order to emerge a leaner and more efficient organisation.
Thomson Reuters, which released its third-quarter earnings report on Tuesday, said the layoffs will be targeted mainly at the company's financial and risk division, its biggest unit.
In February the company had announced layoffs that trimmed 4 per cent of its workforce.
Thomson Reuters said its revenue from ongoing businesses during the third quarter of 2013 grew 2 per cent (before currency adjustments) from the prior-year period to $3.1 billion.
Adjusted EBITDA increased 4 per cent from the prior-year period and the corresponding margin was 27.5 per cent versus 26.5 per cent for the third quarter of 2012. Underlying operating profit was up 3 per cent and the corresponding margin was 17.8 per cent versus 17.5 per cent in the prior-year period.
Net income attributable to common shareholders fell 39 per cent to $271 million, or 33 cents a share, from $441 million, or 53 cents a share, a year earlier, the company said.
Third-quarter adjusted earnings per share were 48 cents, unchanged from the prior-year period, the company said.
Thomson Reuters said the euro crisis has negatively affected its income from banks and other financial companies.
''Though we continue to expect challenging conditions in the coming quarters - particularly with the largest global banks - (the layoffs) are significant steps in returning our financial business to a growth footing,'' chief executive Jim Smith said. ''We will pick up the pace of efforts to simplify and streamline our organisation, to shift resources behind the most promising growth opportunities.''
Thomson Reuters' 2013 outlook includes the impact of an expected $100 million of severance expenses in 2013, $97 million of which was incurred in the first three quarters of the year.
The outlook also includes adjustments for two new accounting pronouncements as well as the reclassification of certain businesses into disposals.
It does not include the planned charge of approximately $350 million or planned pension contribution of approximately $500 million announced on Tuesday.
