Reuters to cut 1,100 jobs over two years

Reuters has announced it is to cut 1,100 jobs over two years.

Reuters has announced it is to cut 1,100 jobs over two years.

Mr Tom Glocer, the news and information group's new chief executive, also said interim pre-tax profits fell by 21 per cent to £357 million sterling.

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

Due to that restructuring and other cost-saving measures, Reuters plans to reduce its staff by 1,100 - split equally between this year and 2002. Reuters has a global workforce of about 18,000.

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The company said the decision to reduce staffing levels was taken after a detailed and carefully considered evaluation of its business needs. It said that, where possible, these reductions will be taken through natural turnover.

Revenue for the six months to June 30th was up by 14 per cent to £1.9 billion. The board is recommending that the interim dividend to be paid to shareholders is increased by 5 per cent to 3.85p per share.

Mr Glocer said: "This is a sound set of results reflecting a resilient core business. 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."