Thomson Reuters to Cut 835 Technology, News Jobs After Merger

[OhioChick]

Source: Bloomberg

May 19 (Bloomberg) -- Thomson Reuters Corp., formed by Thomson Corp.'s $15.9 billion purchase of Reuters Group Plc, plans to eliminate about 835 jobs to help make the cost savings promised by executives.

The reductions include 140 news positions, as many as 650 jobs in content, technology and operations, and 45 posts in sales and service, according to e-mails sent by Thomson Reuters managers to staff and obtained by Bloomberg News. More than half the news jobs to be cut are in Europe, the New York-based company told its journalists today.

Chief Executive Officer Thomas Glocer, 48, is integrating legal databases, bond-trading networks, news, and advisory services. The company, which has about 50,000 employees, said May 1 annualized savings will total $1 billion by the end of 2010 and $1.2 billion a year later.

``There are obvious areas such as databases and news where job cuts are unavoidable and necessary because of overlaps,'' said Gareth Thomas, an analyst at Collins Stewart Plc in London who recommends selling Thomson Reuters shares. ``But investors also want to know what the impact on profitability will be, or how much of the savings will go through to the bottom line and how much will be reinvested.''



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