Thomson Reuters cutting jobs as profit rises
Thomson Reuters, the parent of the Reuters news service, plans to cut up to 4 percent of its workforce, or 2,500 jobs, while its profit rises.
Jennifer Booton of Fox Business writes, “The company said on Wednesday that it expects to spend about $100 million on severance costs, predominantly in the first quarter. A majority of the cuts will take place in its finance and research division.
“Shares of Thomson Reuters slumped 2% in morning trade.
“The New York–based publishing and financial services giant said its turnaround is about halfway complete and remains on track, which includes simplification across the business, improved transparency, disciplined spending and leadership transformation.
“The overhaul efforts position Thomson Reuters to ‘build a foundation for stability in 2013 and profitable growth in 2014.’ The company said net sales will gradually improve with product rollouts, customer service improvements and consolidation.
“The announcement comes as Thomson Reuters posts fourth-quarter operating profit of $658 million, up 2% from $646 million a year ago.
“Excluding one-time items, it earned 60 cents a share, topping average analyst estimates of 55 cents in a Thomson Reuters poll.”