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The
restructuring across 39 countries and 150 locations would mainly
affect the Financial & Risk business and the Enterprise,
Technology & Operations Group, the news and information company
said. The company employs about 48,000 people globally, a
spokesman said.
The changes come as part of its multi-year effort to streamline
its businesses, said Jim Smith, chief executive, in an interview
Tuesday.
"It's about simplification and taking out bureaucracy and taking
out layers all of which have added complexity and slowed us
down," he said. "These actions are not driven by any reaction to
market conditions or in any way coming on the back of
underperformance."
Thomson Reuters is the parent of Reuters News, which competes
for financial customers with Bloomberg LP as well as News Corp's
<NWSA.O> Dow Jones unit. There will be no decline in headcount
in the Reuters newsroom, according to a memo to employees on
Tuesday.
The company reported slightly lower third-quarter net earnings.
Net income was $286 million or 36 cents per share, compared with
$293 million or 36 cents per share, a year earlier.
Excluding special items, earnings were 54 cents per share.
Analysts on average expected 47 cents, according to Thomson
Reuters I/B/E/S/.
Revenue rose 1 percent to $2.74 billion before currency effects
and was flat when they were factored in. The company reiterated
its forecast of 2 percent to 3 percent revenue growth for the
year.
In the Financial & Risk segment, which provides news and
analytics to financial services companies, sales outpaced
cancellations for the 10th straight quarter. Overall unit
revenue was flat at $1.52 billion.
Because of the charge, the company lowered its 2016 forecast for
underlying operating profit margin to between 16 percent to 17
percent, from 18.4 to 19.4 percent.
(Reporting by Jessica Toonkel; Editing by Lisa Von Ahn and Nick
Zieminski)
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