Reuters parent to reshape corporate structure due to pandemic

Thomson Reuters Corp. reported higher sales and operating profits and said it would reshape its corporate structure for a post-pandemic world, closing offices, streamlining technology and relying more on artificial intelligence and machines, reported Kenneth Li and Nick Zieminski of Reuters.

Li and Zieminski write, “The news and information group said it would invest $500 million to $600 million over two years to make the transition from a content provider to a content-driven technology company to serve customers increasingly working from home during the COVID-19 pandemic.

“It aims to cut annual operating expenses by $600 million through eliminating duplicate functions and consolidating technology, as well as through attrition and shrinking its real estate footprint. The cost cuts do not involve layoff programs and divestitures, the company said.

“‘We look at the changing behaviors as a result of COVID … on professionals working from home working remotely being much more reliant on 24-7, digital always-on, sort of real-time always available information, served through software and powered by AI and ML (machine learning),’ Chief Executive Steve Hasker said in an interview.

“Sales growth is forecast to accelerate in each of the next three years compared with 1.3% reported sales growth for 2020, the company said in its earnings release.”

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