Reuters confirm 1100 jobs to go in radical cutback

Global news and information provider Reuters has confirmed that the group will be cutting 1,100 jobs between now and the end of 2002.

The cuts amount to nearly seven per cent of Reuters' workforce and represent one of the biggest mass layoffs in the company's 150-year history.

The company also revealed on Tuesday July 24 that it would speed up its cost-cutting plans.

It now wants to make £85m in annual savings by 2002, on top of the £150m already planned by 2003.

Following the news, Reuters share price fell by five per cent (41p) to 745p after reporting its fall in profits and saying it will be cutting 1,100 jobs.

The cutting of 1,100 staff from the company's 16,500 strong workforce follows the announcement earlier this year that 50 top managers were to lose their jobs.

However the company's new chief executive Tom Glocer said the results were "sound" and reflected "a resilient core business". He said: “We are accelerating the business transformation programme and taking new actions to drive profit growth in the slower market conditions we expect to continue through the end of the year. At the same time, we are establishing a new organisation to focus intensively on our strategic goals and on our customers to drive future revenue growth.

“It is reassuring that Reuters has once again proved able to capture shareholder value in volatile stock markets through the successful IPO of our Instinet subsidiary in May.

The core Reuters Financial division reported operating profits up six per cent to £262m, and the company's recently listed electronic broking subsidiary Instinet saw operating profits grow 28 per cent to £108m ($153m) as it expanded into the US.

The figures come a month after Mr Glocer unveiled a restructuring of the group to create four business units - investment banking and brokerage, treasury, asset management and corporate/media. (AMcE)